Vermont Business Magazine The Green Mountain Care Board (GMCB) today announced its decision to reduce the 9.6 percent rate increase requested by Blue Cross and Blue Shield of Vermont (BCBSVT) for insurance plans offered through Vermont Health Connect (VHC) to 5.8 percent, with the rate increase to be felt by Vermonters averaging 3.2 percent.
BCBSVT rates were filed by the insurer in May and were subject to a 90-day analysis and review by GMCB’s actuaries and staff and by the Office of the Health Care Advocate as an interested party to the filing. The GMCB held a hearing open to members of the public at the Vermont State House on July 23, 2018. The Board solicited public comment on the rates in writing, by phone and in person at the close of the hearing and at a separately-held public forum. The Board received oral and written comments from almost 200 Vermonters.
The reduction ordered by the GMCB is significant, and the 3.2% average rate increase felt by Vermonters reflects the impact of additional premium tax credits available to Vermonters in 2019. The effective impact on MVP, it's chief competitor in this market, will be only 1.9 percent (see below or STORY HERE).
When considering what plan to purchase during open enrollment this fall, the GMCB encourages Vermonters to use the online subsidy calculator available at the Department of Vermont Health Access’s website to see if they are eligible for financial assistance that will offset the cost of their premiums. Vermonters will have the ability to compare plans starting on October 17, 2018.
“Blue Cross’s efforts to help meet the goals of the All-Payer Model Agreement and its participation in state health care reform efforts benefit all of its members, and move us closer to achieving the Triple Aim,” said Kevin Mullin, GMCB Chair. “The company continues to provide Vermonters with a great option for their health care coverage.”
BCBSVT had requested an average annual rate increase of 9.6% over 2018 rates (On July 18, 2018, BCBSVT amended its filing to propose an average annual increase of 9.6% over 2018 premiums offered on Vermont Health Connect; it originally asked for a 7.5% increase.)
Meanwhile, the Green Mountain Care Board on August 9 announced its decision to reduce the rate increase requested by MVP Health Plan, Inc for insurance plans offered for 2019 in Vermont’s individual and small group market through Vermont Health Connect (VHC).
New York-based MVP, which insures more than 25,000 Vermonters in the individual and small group market, requested a 10.9% average annual rate increase for its plans beginning January 1, 2019. The insurer cited rising medical and pharmaceutical costs, the elimination of the federal individual mandate penalty, and changes to federal and state law as drivers of its requested rate increase.
The GMCB cut the rate request by nearly 40%, approving a 6.6% average annual increase. This year, however, due to additional premium tax credits that are available to Vermonters to offset the cost of premiums, the average annual rate increase actually experienced by policyholders will be approximately 1.9%.
Last year,Blue Cross was granted a 9.2 percent increase and MVP a 3.5 percent increase. Blue Cross had requested a 12.7 percent increase, while MVP had asked regulators for a6.7 percent rate hike.
For more information about how the GMCB reviews health insurance rates, see the rate review website: http://ratereview.vermont.gov/.
Source: GMCB 8.14.2018