August 21, 2008-Fargo Forum

ND BLUES REQUEST ANOTHER RATE HIKE
By Erin Hemme Froslie efroslie@forumcomm.com
Front page - 08/21/2008

Blue Cross Blue Shield of North Dakota asked for a 14.9 percent increase to health insurance premiums for employee groups, which represent nearly a quarter of its members. The North Dakota Insurance Department is reviewing the request, which was submitted Aug. 1. Insurance Commissioner Adam Hamm has at least 60 days to gather information and make a decision. He can grant the request, reject it or modify it.

Last month Hamm rejected the insurance company’s request for a 14.8 percent increase to premiums for the bank depositor group, which represents individuals, including the self-insured. BCBS is fighting that denial and asked for a hearing before an administrative law judge.

The hearing hasn’t been scheduled yet, according to the Insurance Department. Rates for the employee group are analyzed separately. The employee group represents 114,666 members and more than 57,000 contracts, according to BCBS spokeswoman Denise Kolpack. “We have a responsibility to file rates that result in adequate premiums that will cover the increasing cost of members’ claims and help us maintain reserve levels that ensure we’re financially sound,” she said.

Last year the insurance company requested a 17.3 percent increase for the employee group and the Insurance Department approved a 9.9 percent increase.