MONTPELIER, Vt. (WCAX) – Vermont’s leading health insurance carriers are asking state regulators for double-digit rate increases.
Call it health care déjà vu. In new filings to the Green Mountain Care Board, Blue Cross Blue Shield of Vermont and MVP Healthcare say they will need to raise rates next year.
“This year is a confluence of factors contributing to these high costs and its difficult for consumers,” conceded BCBS’ Sara Teachout.
BCBS wants to raise rates 16.1% for individual plans and 19.1% for small group plans serving businesses with fewer than 100 employees. MVP is requesting an 11.7% increase for individual plans and 9.3% increase for small group plans.
BCBS officials say a big driver of the costs is increased utilization of health care services at hospitals and an aging demographic with more people using expensive care. They say spiking pharmaceutical drug prices are a big factor.
Teachout says a bill on its way to the governor that would let providers administer tests to patients without requesting pre-approval from carriers is the kind of policy that is driving costs higher. “It’s contributing about 10% percent of the total increase of about $8.9 million,” she said.
But the bill isn’t law yet and hospitals say that it will also save money, from unnecessary procedures and fewer providers dropping out from burnout. “Could this actually help with our workforce in three areas — recruitment, retention, and burnout,” said Mike Del Trecco with the Vermont Association of Hospitals and Health Systems.
Some worry about what yet another double-digit rate increase would mean for Vermonters’ bottom line. “It’s scary. I think the average Vermonter or the business looks at this and says, ‘I can’t pay it,’” said Mike Fisher, the state’s health care advocate. He says people who buy directly from the Vermont Health Connect are largely protected this year with federal subsidies. But he’s concerned about the consequences of continued year-over-year increases.”The concern we’re in a spiral of rising costs and people being priced out of being able to get the care they need.”
Business groups say the cumulative impact of the looming property tax hike, a new payroll tax for child care, inflation, and potential health care rate hikes puts more pressure on small businesses. “All of the different pieces of Vermont law, the policies we set forward. And we have to ask ourselves, are we content with double-digit rate increases every year,” said Betsy Bishop with the Vermont Chamber of Commerce.