Vermont Business Magazine The state’s largest health plan submitted its rate filing for Qualified Health Plans (QHPs) on Wednesday. Blue Cross Blue Shield of Vermont (BCBSVT) said premium increases were primarily driven by two factors: Vermonters in QHPs sought more health care than previously anticipated and the costs of pharmacy and medical care continue to rise. The combination would have precipitated a 10 percent increase, but BCBSVT said favorable assumptions on its part brought the company’s request to the Green Mountain Care Board down to 8.2 percent for 2017 Exchange plans. MVP is requesting an 8.8 percent average annual rate increase. The filed rates reflect the insurers’ estimates of future costs including medical and prescription drug costs and administrative expenses, based on historical data and forecasts of trends in the upcoming year.
Blue Cross said in its filing that the 2017 rate request is based on health care consumed by its members in 2015, which is the first full year of data for the QHP combined risk pool under the new plan designs.
Don George, BCBSVT CEO. VBM file photo.
“We recognize the burden that health care costs have on Vermont individuals and businesses and we have worked to lower our rate request, but this filing reflects the reality of covering medical and pharmaceutical costs in our state,” said Don George, President and CEO of Blue Cross Blue Shield of Vermont.
The GMCB has begun its review of the proposed rates which it must approve, modify or disapprove within 90 days of their receipt. During this period, the GMCB’s contracted actuaries will review the filings, the Vermont Department of Financial Regulation will evaluate the impact of the requested rates on the insurers’ solvency, and the GMCB will hold hearings open to the public on July 20 (BCBSVT) and July 21t (MVP) starting each day at 9 am. The hearings will be held in the GMCB’s 2nd Floor Board Room in the City Center, 89 Main Street in Montpelier. The Office of the Health Care Advocate will participate in the hearings representing the interests of Vermont consumers of health care.
Information about the rate filings and copies of all rate documents, including the written actuarial and solvency reports, will be posted to the GMCB’s rate review website at http://ratereview.vermont.gov/
Members of the public are encouraged to submit written comments on the proposed rates through July 26th via the rate review website, by email to [email protected], by mail at GMCB, 89 Main Street, City Center, Montpelier, Vermont, 05620, or by phone, 802-828-2177.
In addition, time will be set aside at the close of each hearing for Vermonters who wish to submit a comment in person. The Board will issue final decisions on the rates on August 9, 2016.
Government related factors continue to impact health plan premiums. Blue Cross and Blue Shield of Vermont explained that, due in part to the ongoing pressure of managing plans purchased through Vermont Health Connect, there is an increase for plan administration in its filing, but it remains well below industry averages. The Federal government waived the Health Insurer Tax for one year, positively affecting rates. Other known factors have not changed, “Unfortunately, the Medicaid and Medicare cost shift continues to impact privately insured Vermonters with a disproportionate share of paying for Vermont’s health care system,” George added.
Following its review, the Green
SEE FULL BLUE CROSS FILING HERE
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BLUE CROSS
MVP
Mountain Care Board is expected to issue a final decision on QHP rates in mid-August. The new rates would become effective January 1, 2017 for individuals and small group employers.
Since 2013, BCBSVT’s approximately 400 employees have conducted extraordinary outreach and support initiatives to assist tens of thousands of Vermonters with navigating the troubled rollout of Vermont Health Connect. Currently there are more than 70,000 Vermonters enrolled in BCBSVT QHPs.
Blue Cross Blue Shield of Vermont is the state’s oldest and largest health insurer, providing coverage for approximately 225,000 Vermonters through group and individual health plans. It employs about 400 Vermonters at its headquarters in Berlin and its Information and Wellness Center in the South Burlington Blue Mall. More information about BCBSVT is available on the Internet at www.bcbsvt.com.
Blue Cross Blue Shield of Vermont is an independent corporation operating under a license with the Blue Cross Blue Shield Association made up of independent Blue Cross and Blue Shield plans.
Source: BCBSVT 5.11.2016