State Insurance Department says increases, which range from 5.4 percent to 12.5 percent, are "modest and reasonable and not excessive."
The Excellus headquarters building in DeWitt.Syracuse, N.Y. -- The state has approved a request from Excellus BlueCross BlueShield for rate increases ranging from 5.4 percent to 12.5 percent on some of its health insurance policies.
As part of a new rate review process, the state Insurance Department did not reduce the size of the Excellus request. The increases announced today take effect January 1.
Health insurers used to be able to increase rates without state approval. A recently passed state law now requires insurers to get rate hike requests approved by the state Insurance Department.
The Insurance Department has made decisions in 12 insurance companies’ rate hike cases so far. In nine of those cases, the state granted rate increases smaller than requested by insurers. It cut rate hike requests by an average of 2.5 percent.
Troy Oechsner, an Insurance Department deputy superintendent, said his agency did not modify the request from Excellus because it was justified. “They were modest and reasonable and not excessive and we approved them,” Oechsner said.
Excellus got permission to raise rates 5.4 percent on its direct pay policies, 5.4 percent on its ValueMed policies, 5.4 percent on its Healthy New York policies and 10 percent to 12.5 percent on its community-rated group policies. Community-rated plans charge everyone the same premium for the same coverage, regardless of age or health.
Excellus has about 700,000 members in Central New York. The increases will affect about 75,000 of them.
The increases do not apply to experienced-rated or self-funded groups whose rates reflect their own claims costs.
Excellus has said it needs the rate hikes because of increased use of health care services and the rising cost of medical goods and services.
The Insurance Department has not made a decision yet on a request from MVP Health Care, another insurer operating in Central New York. It is seeking increases ranging from 8 percent to more than 40 percent on its community-rated policies.