BlueCross Rates Soar 26 Percent

by | Jul 2, 2008 | Learn |

Today’s Oregonian has a story by Bill Graves about the continued dramatic rise in health insurance premiums. It begins:

A 26 percent rate increase by Oregon’s largest health insurer underscores the need to overhaul the state’s health system and bring costs under control, health care reform advocates and business leaders said Tuesday.

Regence BlueCross BlueShield of Oregon raised rates Tuesday by 26 percent for individual insurance plans due for annual renewal and by 16 percent for small group plans, which are mostly for small businesses with 50 employees or fewer.

“This is one more example of a broken health care system that we all have a responsibility for fixing,” said Maribeth Healey, executive director of Oregonians for Health Security. She and 17 other health reform and business leaders gathered for a news conference in downtown Portland outside the building known as the Black Box, which houses some of the BlueCross offices.

Portland resident Karen Kirsch filed a challenge of BlueCross’ 26 percent rate increase with the state, and Department of Consumer and Business Services officials said they will schedule a hearing to determine whether the increase is justified.

Up on the 12th floor of the Black Box, Dr. Bart McMullan, president of Regence BlueCross, agreed the health care system was on an unsustainable path and needs to be transformed. The fact is, he said, his company lost $21 million to $23 million last year on its individual health care plans.

The story includes this “fact box:”

Rising health insurance rates
Tuesday, July 01, 2008
The Oregonian

Average monthly premium for health insurance purchased directly by the individual and for health insurance provided through employers with more than 50 covered employees.

Here’s the format:
Insurer = 2007 Individual cost* (change since 2005) — 2007 Employer cost* (change since 2005)

Regence BlueCross = $127 (down 29%) — $268 (up 8%)

Kaiser = $383 (up 22%) — $300 (up 18%)

Providence = $141 (up 4%) — $273 (up 11%)

Health Net = $191 (up 9%) — $263 (up 13%)

PacificSource = $168 (up 4%) — $307 (up 17%)

LifeWise = $164 (up 4%) — $293 (up 14%)

* Premiums have increased in the past year in most cases but new figures are not available for all insurers.

Source: Oregon Department of Consumer & Business Services

You can read the whole story here.