Rhode Island Attorney General Peter Neronha is taking a strong stance against the proposed premium hikes requested by several health insurance companies for 2025. In a letter to Cory King, who leads the state’s Office of the Health Insurance Commissioner (OHIC), Neronha urged the commissioner to reject the requested increases, which range from 2.5% to a staggering 22.7%. This is not the first time Neronha has clashed with health insurers over rate hikes, as he recommended against them last year as well.
Neronha’s office utilizes actuaries to analyze proposed rate increases and determine their feasibility. The health insurance commissioner also conducts their own analysis, solicits public feedback, and ultimately approves or denies the requested increases. Neronha’s latest memo highlights a deeper issue beyond actuarial projections, questioning the necessity of such significant rate hikes given the current health care and economic landscape.
One of the systemic problems identified by Neronha is the fragmented regulatory scheme in Rhode Island, which limits the jurisdiction of the health insurance commissioner to only about 15% of residents. This leaves out self-insured employers under ERISA, exempt from state regulation. Despite efforts by some insurers to improve their methodologies based on the office’s recommendations, rate increases persist, prompting Neronha to call the system „broken.“
In response to Neronha’s critique, Blue Cross Blue Shield of Rhode Island cited rising prescription drug costs and increased medical service utilization post-pandemic as reasons for their proposed rate hike. Other insurers, like Neighborhood Health Plan and UnitedHealthcare, did not comment on the memo. Neronha’s focus on rate increases over 10% is aimed at protecting consumers from exorbitant premium hikes, particularly in the small- and large-group plans offered by employers.
Al Charbonneau, executive director of the Rhode Island Business Group on Health (RIBGH), echoed Neronha’s concerns about the broken healthcare system and the need for substantial changes. RIBGH supports rejecting the proposed rate increases, which they deem unsustainable and burdensome for Rhode Island consumers. Their analysis shows that a significant portion of median household income goes towards commercial family premiums, indicating a pressing need for affordability and transparency in healthcare spending.
Overall, Neronha’s call to deny the requested premium hikes reflects a broader push for reform in Rhode Island’s healthcare system. By challenging the status quo and advocating for more substantial changes, Neronha and organizations like RIBGH are working towards a more affordable and equitable healthcare landscape for all residents. The decision on this year’s proposed rates by the health insurance commissioner will be crucial in determining the future of healthcare affordability in Rhode Island.