Regulators approved premium rate increases for health plans sold through the Vermont Health Connect exchange that will take effect in the fall. The increases are smaller than those requested by the two participating insurers.
The increases are needed to cover rising medical and prescription drug costs, as well as new state and federal requirements for exchange health plans including a lower cap on out-of-pocket costs.
Blue Cross Blue Shield of Vermont, which covers more than 65,000 people through the exchange and is the state’s largest health insurer, requested an 8.6 percent rate increase for its 2016 exchange plans. The Green Mountain Care Board approved 5.9 percent increase, according to a news release Thursday.
MVP Health Care, which covers nearly 6,500 people in the exchange, requested a 3 percent increase, and the board approved 2.4 percent for its 2016 plans.
Depending on a person’s specific plan their premiums may increase by more or less than the approved increase, which is an aggregate figure for all health plans sold by the insurer.
Board chair Al Gobeille told Vermont Public Radio that approving a rate increase for Blue Cross that is twice the rate of inflation was a difficult decision, one that demonstrates the need for continued health care reforms aimed at reducing the cost of care.
Additional information on the rate increase decisions can be found here.
