Nearly 60,000 Oregonians Face Pending 22% Regence Rate Hike

Regence BlueCross BlueShield of Oregon has filed for a 22.1% average premium increase effective August 1, 2011. This impacts 59,447 Oregon consumers and families with individual policies, not employer-sponsored coverage.

While the average increase is 22.1%, consumers could see actual increases as low as 16.7% and as high as 34.1%. Today’s filing comes after five straight years of double-digit rate increases: 16.4% in 2010, 17.1% in 2009, 24.1% in 2008, and 17.6% in 2007.

On June 2nd from 4:30-7:00pm the Oregon Insurance Division will hold a public hearing on this pending rate increase.

OSPIRG Foundation’s Health Insurance Rate Watch project will analyze Regence’s proposed rate increase, submit an official comment to the Insurance Division and post it on the OSPIRG website. The Insurance Division has also asked OSPIRG to testify on its findings at the June 2nd hearing.

Read Regence’s proposal and post a comment of your own. The deadline for public comments is June 2nd, the same day as the public hearing.

Background on Oregon’s health insurance rate review program:

In response to soaring health insurance costs, Oregon strengthened the standards that health insurance companies must meet before raising premium rates for small businesses and people who buy individual coverage. Insurers must justify rate hikes, showing that they are not excessive. The Oregon Insurance Division evaluates these justifications, which include information about the insurer’s administrative expenses, financial position, and what the insurer is doing to reduce costs in ways that improve quality for patients. All health insurance rate filings are public information, available online, and open to public comment. The Insurance Division is required to take public input into consideration when considering a rate proposal. More information.

OSPIRG Foundation staff served on the advisory committee on the development of these rate review rules, and OSPIRG Foundation’s Health Insurance Rate Watch project is funded in part by a grant from the Insurance Division to provide analysis and comments of health insurance rate filings from a consumer perspective. The project’s advisory committee includes small business and consumer experts including AARP-Oregon and Consumers Union.