BCBS Wants to Raise Rates by as Much as 77% - No I'm Not Kidding

BCBS Wants to Raise Rates by as Much as 77% - No I'm Not Kidding

I am trying to rally as many people as possible to oppose Blue Cross Blue Shield from being allowed to raise their rates here in Michigan. In a recent article, Free Press Medical Writer Patricia Anstett reported that Blue Cross Blue Shield of Michigan is asking Ken Ross, Michigan insurance commissioner, to allow them to raise their rates by as much as 77% in some plans. The supplemental Medicare plan rate would increase 31.2%. This is the plan that would impact my parents and many other General Motors retirees.

            On Jan. 1 of this year GM stopped providing health care policies to its nearly 100,000 salaried retirees. Instead, the company is giving retirees a $300 stipend per month to purchase their own policies. My dad reports that GM did a terrific job helping the retirees through this transition. My parents are able to buy the supplemental health insurance with the stipend. However, they can no longer afford dental or optical coverage with that amount of money. What is going to happen to these retirees and others should this rate increase go through? There are approximately 400,000 people in this state who could be affected.

            When I spoke to an administrator at Ken Ross' office, she said Blue Cross asks for a rate increase about once per year and that we cannot expect the commission to not raise the rates a certain amount, what with the rising cost of health care and all. But I do not think this should be just a matter of course.

            Attorney General Mike Cox is opposed to the rate increase because, he says, the company still makes money, has not done enough to avoid losses and could cut spending and salaries. A new report by the Public Interest Research Group states that employer-paid health insurance could double in the next seven years, from $11,381 to $24,291 and that wasteful spending and inefficiencies are fueling this trend. The Washington Post reported that "the total cost in waste in 2007 for insurance bureaucracies, drug companies, medical device manufacturers and providers was $730 billion," according to the Congressional Budget Office.

            Ken Ross' office informed me that my dad could request a hearing but that he would have to show why the rates are inappropriate actuarially - basically, prove that Blue Cross Blue Shield does not need this increase. How do we do that? I asked. She said you would typically have to hire an attorney. That is totally unfeasible.

            So what can we do? Most importantly, let Ken Ross know where you stand. Tell him to deny ANY and ALL rate increases. You can email him at ofir-ins-info@michigan.gov or call 877-999-6442. Send a message to Blue Cross Blue Shield that it is time for them to be more responsible.