Non-group Blue Cross plans face rate hikes: The state approved 9.9 percent increases for four groups, not the higher ones the insurer requested. [The Times Leader, Wilkes-Barre, Pa.]

Dec. 3--About 56,000 members of Blue Cross of Northeastern Pennsylvania's non-group health insurance plans will see a rate hike on Jan. 1, but it won't be quite as large as the insurer had hoped.Blue Cross in August petitioned the state Insurance Department to permit insurance premium increases for customers in four programs that would allow the company to generate more than $9 million in additional annual revenue. The department recently approved rate increases that will let the company generate $5.65 million in new revenue, said company spokesman Anthony Matrisciano.Blue Cross had requested rate hikes ranging between 19.9 percent and 48.9 percent for customers in the four targeted groups; the state approved 9.9 percent across-the-board hikes for all four groups, Matrisciano said.Matrisciano said Blue Cross will, as it has over the past years, use its surplus "to mitigate rate increases." The company's surplus stood at $289.5 million as of June 30, he said.He noted the company alerted newspapers and published public notices about the rate hike in August so subscribers wouldn't be caught off-guard."The reasoning behind why we were applying for the increases is that these groups tend to be high utilizers of medical care. On average, we spend $1.07 on medical care for every $1 we receive in premiums. It's because of the increase in rising medical care costs that these members are incurring," Matrisciano said.The plans affected are BlueCare Cooperative -- a more comprehensive benefit plan designed for members who tend to be older and/or sicker than most; Security 65 -- a Medicare supplement program for senior citizens; Special Care -- a plan designed for low-income individuals; and Major Medical -- a plan that only supplements other plans to provide additional benefits.Subscribers to the plan that costs Blue Cross the most money -- BlueCare Cooperative, at a payout of $1.30 for every $1 in premiums received -- will see monthly rates rise from $273.13 to $300.16 for individuals and from $539.49 to $592.90 for families. If the requested increase had been approved, those rates would have jumped to $406.63 and $803.19, respectively.Matrisciano said subscribers who might have a tough time affording the new higher premiums should consider some non-group insurance products the company introduced in April called BlueCare Direct, which offers plans with monthly premiums as low as $88. Letters sent to non-group subscribers in late November alerting them to the rate increases included a phone number they can call for more information on the plan, he said.Matrisciano also noted Blue Cross offers Blue Health Solutions -- a health and wellness program -- free to all subscribers."It's an effective way to manage health care costs and really help people to stay healthier. There's a disease management program that gives people access to a personal health coach. Some people used the program and were able to get off medications for diabetes, high blood pressure and cholesterol," he said.Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.To see more of The Times Leader, or to subscribe to the newspaper, go to http://www.timesleader.com.Copyright (c) 2009, The Times Leader, Wilkes-Barre, Pa.Distributed by McClatchy-Tribune Information Services.For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.