If accepted, the new request would increase premiums for individual health plans by 21% and small group plans by 24% in 2025
By Peter D’Auria/VTDigger
BlueCross BlueShield of Vermont is seeking to raise health insurance premiums by an additional 4.3% next year, further increasing a request for already near-record-high rate hikes.
The proposed increase would increase premiums for individual BlueCross BlueShield health plans by an average of 21% and small group plans — plans for companies that employ up to 100 employees — by an average of 24% in 2025. (Because the insurer offers a variety of different plans, the actual increases would vary.)
If approved, the rates would amount to the “highest premium rate increase for our 2025 Qualified Health Plans since the inception of Vermont Health Connect,” the state’s health insurance marketplace, BlueCross BlueShield President and CEO Don George said in a letter to community members Monday, July 22.
“Unfortunately, the high demand for medical services, increasing prices at hospitals, exponential growth in drug prices, and new state laws are all forcing higher premiums to pay for the cost of caring for Vermonters,” George said.
BlueCross BlueShield insures roughly a third of Vermonters. About 45,000 residents are insured on its small group and individual plans, which would be affected by the increases. The insurer also sells other plans for larger employers, which are not available on the state’s health insurance marketplace.
The requested rate hikes must still be approved by the Green Mountain Care Board, which will issue a decision next month.
The board is holding a public hearing to discuss insurance rates at 4 p.m. Thursday, July 25.
The request for additional funding is necessary to replenish BlueCross BlueShield’s cash reserves, administrators at the nonprofit insurer said. Under Vermont law, BlueCross BlueShield is required to maintain a certain amount of money in reserve to cover potential risks — such as paying higher-than-expected claims for its members.
The increased volume of claims led to “extraordinary cost pressures” for health care organizations, George, of BlueCross BlueShield, said in his letter.
“I share the frustration that all Vermonters feel about rising costs, difficulty accessing services, and the challenges to staying well,” he added. “I invite you to join me in an open dialog with our state regulators and policy makers about the cost pressures impacting the commercial health insurance marketplace and the choices that have led to this unprecedented situation,” George continued.
