Blue Cross seeks $16.4 million in health insurance premium increases : JAMES HAGGERTY
By: Health Insurance
Submitted: 2009-08-15 18:53:02 | Word Count: 418
Blue Cross of Northeastern Pennsylvania is seeking more than $24 million in health-insurance premium increases that would affect 54,700 people.
"The reason behind the rate increase is the increased costs in health care," said Anthony Matrisciano, spokesman for Blue Cross, which is based in Wilkes-Barre and provides coverage for 588,000 people in 13 regional counties.
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The proposed increases, which are under review by the state Insurance Department, would take effect Jan. 1 and would affect rates in six plans:
- Various BlueCare security packages that cover medical expenses for 37,000 senior subscribers beyond costs covered by Medicare would increase 20 percent and generate $5.5 million in annual revenue.
- Special care, a plan covering 4,760 low-income, high-use subscribers, would increase 27 percent and generate $900,000 annually.
- Comprehensive Blue-Care cooperative, which covers 3,573 subscribers and has low deductibles and co-pays, would increase 49 percent and generate $7 million annually.
- Major medical, a supplement to other coverage that includes 3,195 ratepayers, would increase 23 percent and generate $1.5 million annually.
- BlueCare senior hospital, which pays expenses beyond those covered by Medicare or another health plan for 3,100 people over age 65, would increase 9 percent and generate $258,000.
- BlueCare senior pharmacy, which covers prescription costs for 2,900 people over age 65, would increase 20 percent and generate $1.3 million.
Blue Cross, a nonprofit established originally to help the indigent pay for health care, has drawn criticism for its surplus, which totaled $263.6 million in March.
Blue Cross has used $86 million of its surplus to subsidize coverage over the last five years, Mr. Matrisciano said.
"Even with that, we still have this need," he said. "The premium dollars we get in go back out to pay the claims."
The Insurance Department will accept input on the proposed increases for 45 days before taking action.
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