“Murderous,” “unconscionable,” “outrageous”: In no uncertain terms, Vermonters expressed their outrage Tuesday at health insurance companies seeking to raise the cost of medical care during Covid-19.
Nine hundred people submitted written comments and more than 50 tuned in to the Green Mountain Care Board’s public hearing, as they asked the state’s health care regulators to deny rate increases to insurers.
Blue Cross Blue Shield of Vermont has asked for a 5.5% rate hike and MVP Health Care has requested a 6% increase for 2021. The requests are down about a percentage point from their original applications. Both companies presented their case this week to the board, which will make a final decision by Aug. 14.
State officials have joined the call for the Green Mountain Care Board to hold insurance rates steady. Human Services Secretary Mike Smith said he had expressed “concern” about the impact that raising health care costs would have on residents who are struggling financially. “I don’t think Vermonters … should have to endure a rate increase,” he said. “Hopefully … the Green Mountain Care Board will do the right thing as we move forward.”
Mike Fisher, the state’s health care advocate, has also asked that the board deny the rate increases.
Meanwhile, representatives from the insurance companies said they need higher rates to keep up with the rising cost of medical care.
BlueCross attributed its request to the surging cost of prescription drugs, especially specialty drugs. People are also seeking more medical care, according to filings with the Care Board.
The feedback from Vermonters at the hearing reflects an “emotional response,” said Blue Cross spokesperson Sara Teachout. It’s not insurance companies that are to blame, she said; “The real driver of health care costs is the medical treatment and pharmaceuticals that are being used to treat serious conditions.”
During the pandemic, Blue Cross Blue Shield helped ease financial challenges by providing advanced payments to hospitals, keeping people on insurance even when they couldn’t pay, and covering the full cost of Covid testing and care, she said.
Michelle Golden, spokesperson for MVP Health Care, contended that insurance companies must have enough money to be able to pay for unexpected bills. “State regulators have solvency requirements in place so consumers can have peace of mind that we will be able to pay for their claims even in adverse situations,” she said in an email.
About a quarter of MVP Health Care’s overall 6% increase is driven by pandemic costs. The company predicted that 2021 would return to pre-pandemic levels of medical care. They also assumed in their filings that 80% of the population could get a vaccine by early next year. The company is balancing “efforts to keep rates affordable while adjusting for the realities that health care costs and the cost of prescription drugs are rising,” Golden said.
Such explanations didn’t appear to appease those who attended the hearing.
HB Lozito, a Brattleboro resident, said they paid $400 in premiums, but had such a high deductible, they were still paying for most medical care out of pocket. “It’s cruel to even consider raising rates during a global pandemic,” Lozito said.
A nurse, Maggie Belensz, described caring for a Covid patient at the University of Vermont Medical Center. As the patient gasped for breath, he worried about how he’d pay for his hospital stay, she said.
Twenty-one-year-old Madelin Walker found out she had a chronic condition when she started suffering pain, nausea and unbearable exhaustion three years ago. She had insurance, but ended up canceling doctor’s appointments because she couldn’t cover the co-pays, she told the Care Board. The high prices forced her to choose between “crippling debt or constant pain,” she said.
Walker, and other commenters, advocated for Vermont to pursue universal health care. At a minimum, they asked for a zero percent rate hike.
“People feel a level of outrage and frustration and fear about their current access to health care,” said Fisher, the state’s health care advocate. “That comes out loud and clear.”
The requests come as medical care has decreased during the pandemic. Hospitals postponed and canceled a majority of patient appointments during the height of Covid. At the insurance hearing earlier this weekend, representatives said they wanted to be prepared for a possible second wave or uptick in cases next year.
The Green Mountain Care Board has never denied a rate increase, said Chair Kevin Mullin. But, “All avenues are being considered and nothing has been ruled out.”
Mullin vowed to take into account the arguments of all sides. “The mindset in the board is trying to figure out what the vast range of possible events could be,” he said. With the pandemic and financial collapse “this is a tough time for people,” he acknowledged.
Correction: Due to incorrect information from the GMCB, a previous version of this story had the wrong date of the board’s expected decision.
