Regence must justify increasing rates

Statesman-Journal:

Regence BlueCross BlueShield of Oregon may indeed deserve the 22.1 percent rate increase it's seeking for individual policyholders. But the insurer hasn't made the case — yet.

Today, Regence officials get their chance. So does the public. A hearing is scheduled for 4:30 to 7 p.m. in Portland.

Such hearings should be the norm for rate requests; they're not. We hope today's session provides a robust discussion and analysis, creating a precedent for addressing future rate requests.

Regence wants to raise the monthly rate an average of $36 for the approximately 59,000 policyholders who have individual health insurance plans. These are people who aren't covered by employer or other group plans. If approved, the average 22.1 percent increase would take effect Aug. 1.

The insurer says its proposal is justified by increased costs of care, new benefits being offered and higher administrative costs. For example, new drugs and technologies coming on the market will drive up costs as physicians prescribe them. But in a meeting with the Statesman Journal Editorial Board last week, Regence officials displayed a surprising lack of specifics.

Read the full article here. Discuss below.