[T]he two health insurance companies that sell through Vermont Health Connect are asking to increase what they charge for insurance plans by more than 8 percent each.
Blue Cross Blue Shield of Vermont is seeking increases averaging 8.2 percent starting Jan. 1. MVP Health Care wants to raise its price for the same period by 8.8 percent.
The companies submitted the requests Wednesday to the Green Mountain Care Board, which regulates how much the companies charge on the exchange as one of its core functions.
Over the next 60 days, the board must work with actuaries to release a report on the proposed increases. Within 30 days after that, the board must decide whether to approve, modify or reject the two insurers’ proposals.
The board has scheduled public hearings for the Blue Cross proposal at 9 a.m. July 20 and the MVP proposal at 9 a.m. July 21 at its boardroom in Montpelier. Health care advocates at Vermont Legal Aid will testify on behalf of consumers.
Blue Cross covers about 90 percent of customers on the exchange, and its proposed increase is similar to those in previous years. For the 2016 insurance year, Blue Cross requested a 7.2 percent increase and received 5.9 percent. In 2015, Blue Cross requested a 9.8 percent increase and received 7.7 percent.
MVP’s request this year is higher than last year’s, but the company has typically charged more than Blue Cross for its plans. In the 2016 insurance year, MVP requested a 3 percent increase and received 2.4 percent. In 2015, MVP requested 15.3 percent and got 10.9 percent.
“It’s about average,” said Al Gobeille, the chair of the Green Mountain Care Board, of the current requests. “I think that the human reaction is, ‘Whoa!’ I think the regulators’ reaction is, ‘We got a lot of work to do.’”
About a third of Vermont Health Connect’s individual customers will pay the full cost of the insurance plans. About two-thirds of individuals using Vermont Health Connect will receive help paying their premiums from the state and federal government. Small businesses in Vermont pay a portion of the cost of plans on Vermont Health Connect for their employees.
Gobeille said the board is still working on hospital budget proposals and that the amount regulators allow hospitals to charge insurers will affect what the insurers will be allowed to charge customers.
“What I worry about is the individual who has to pay the entire amount,” he said.
