Private health insurers have asked state regulators to approve double-digit premium hikes in 2023 — increases that could mean Vermonters with private insurance could pay hundreds of dollars more for health coverage next year.
In its annual filing to the Green Mountain Care Board, BlueCross BlueShield of Vermont asked regulators to approve a 12.5% increase in 2023. MVP Health Care asked for 16.6%.
Insurers said the increases would cover what is expected to be a costly year for hospital spending.
The exact increase for each customer would depend on the plan the enrollee chooses. For example, a BlueCross analysis projects its Silver Plan enrollees could pay $700 more in premiums next year.
Hospital executives have said previously the pandemic forced them to raise salaries and hire costly temporary staff.
“You can’t have this huge growth in the cost of personnel and expect there’s not going to be an increase in private insurance rates,” care board chair Kevin Mullin said.
University of Vermont Health Network, the largest health system in the state, already secured a modest midyear increase in service charges. Other hospitals in the state are expected to follow suit in next year’s budget cycle, which begins this summer.
If the Green Mountain Care Board allows insurers to raise their rates in 2023, Vermont Health Connect enrollees who don’t get federal subsidies would take a hit. So would Vermonters who get health insurance coverage through small employers.
Mullin said on Monday that the care board has yet to discuss the proposals, but warned that consumers likely would face some premium increases.
The double-digit rates are essentially a barometer for uncertainty on several fronts, said Sara Teachout, spokesperson for BlueCross. Insurers are expecting hospital costs to rise, but the board won’t review hospital pricing until after it sets insurance rates.
Adding to the uncertainty is Mullin’s impending departure as chair and questions surrounding his successor. Thom Walsh, the newest member of the board, tends to vote against price increases, as does board member Tom Pelham. Jessica Holmes and Robin Lunge, both appointed by former Gov. Peter Shumlin, often vote for increases, making Mullin the tie-breaking vote.
A successor who sides with Pelham and Walsh could provide a change of direction for the board when it comes to hospital and insurance price increases.
Hospitals also are poised to raise the price of specialty drugs — lifesaving infusions that cost thousands of dollars per dose. Because of their steep costs, these drugs account for roughly half of prescription spending in the state, according to Teachout, who said any increases in those prescription prices could significantly ratchet up the overall cost of drug coverage.
The board is expected to discuss the proposals in public next month, but the final vote is not scheduled until August.
