Hearing set for public to weigh in on proposed health insurance rate increases for 2025

Blue Cross Blue Shield of Rhode Island is one of the health insurers with proposed rate increases for 2025. Seen here are the company’s offices on Exchange Street in Providence. (Alexander Castro/Rhode Island Current)

A virtual town hall meeting will allow the public to provide feedback on rate increases ranging from 2.5% to 22.7% proposed by Rhode Island’s health insurers.

The meeting will be Monday, July 15, from 4:30 to 5:30 p.m. over Zoom .

Further rules for submitting comments on the proposed rate increases are available from the Office of the Health Insurance Commissioner (OHIC). In addition to the town hall, OHIC will accept written comments on the proposals through July 19. Commissioner Cory King is responsible for approving, modifying or rejecting the proposed rates.

Premiums are paid monthly and maintain a person’s coverage on their health insurance plan. The state’s health insurance commissioner reviews these rates annually, and insurers file their requested rate increases for the upcoming year. Rates differ according to whether a person is subscribed individually or through their employer. A company’s size also affects the premium price, and smaller employers usually provide more expensive plans.

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The commissioner’s office cited increased use of health services, provider prices and prescription drug costs as reasons behind the proposed increases. This year’s rate increase proposals include:

• Blue Cross Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island filed proposed increases for individual insurance purchased through a marketplace.
• Blue Cross, Neighborhood, UnitedHealthcare, Harvard Pilgrim Health Care of New England and Harvard Pilgrim Health Care Insurance Company filed increases for small group rates, which typically covers companies with 50 or fewer employees.
• Companies with more than 50 employees, which qualify for large group rates, would see increases from Blue Cross, UnitedHealthcare, both Harvard Pilgrim insurers, Aetna and Cigna.

The rates do not apply to self-funded employer groups, which accounts for approximately 65% of Rhode Island’s employer-sponsored coverage, according to OHIC. Self-funded employers pay employee health expenses directly, but they also rely on health insurers for administrative services.

Rep. David Morales, a Providence Democrat, encouraged the public to attend the town hall in a statement Friday morning urging King’s office to reject the proposed rate increases.

“Despite the quality of care remaining almost the same, private health insurance companies are proposing steep rate hikes that would impact over 150,000 Rhode Islanders,” Morales said. “Combined with the increasing cost of housing, energy, food and other basic amenities, working people cannot afford to pay more for medical services while health insurance executives continue to rake in millions in profit.”

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The Office of Attorney General, which reviews and makes recommendations to OHIC on annual rate increases, could not immediately provide a comment Friday afternoon on the 2025 proposed rate hikes. In August 2023, Attorney General Peter Neronha criticized the rate increases proposed and urged the commissioner to reject the proposals.

“Rhode Islanders should not bear the full weight of rising health care costs alone,” Neronha stated then. “It should be a shared responsibility borne by all stakeholders including health insurance companies. Indeed, among all the players, they are by and large the strongest financially.”

Private insurers also pay far more for some services than publicly-funded Medicare or Medicaid do. A 2020 analysis by KFF found that, on average, insurers pay 199% of Medicare rates for hospital services.

The commissioner’s office expects to release its decisions on the rate proposals in August.

How to provide feedback via email

To submit a written comment on the proposed rate increases, email HealthInsInq@ohic.ri.gov by Friday, July 19.

Rate review documents can be viewed here .

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