Insurer seeks up to 12.5 percent increase on some health policies.
View full sizeThe Excellus headquarters building in DeWitt.Syracuse, N.Y. -- Excellus BlueCross BlueShield is asking the state for permission to increase rates on some of its health insurance policies next year by as much as 12.5 percent in Central New York.
The company said the proposed increases vary by product type. Commercial community-rated products would see increases ranging from 9.5 percent to 12.5 percent. Community-rated insurance plans charge everyone the same premium for the same coverage regardless of age or health.
Excellus also is asking for rate increases of 4 percent to 7 percent for its Healthy New York products. Healthy New York is a state-sponsored plan that offers no-frills insurance coverage at a cost less than commercial plans. Premiums on some Medicare supplemental plans, commonly known as “Medigap,” would decrease by as much as 5 percent.
Excellus announced the proposed changes earlier than usual because of a recently passed state law that requires insurers to get approval from the state Insurance Department before raising rates.
The proposed increases would take effect Jan. 1.
The increases would not affect Medicare Advantage products such as Medicare Blue PPO. Those prices are governed by the federal government and are typically announced in the fall. Also unaffected by the increases are experienced-rated or self-funded groups whose rates reflect their own claims costs.
Excellus said the rate hikes are necessary because of increased use of health care services and the rising cost of medical goods and services.