October 11, 2008-Bismarck Tribune

The denial is the second for North Dakota’s largest insurer in recent months after Hamm denied a 14.8 percent rate increase request from the company in July for its individual policies.

Hamm said he disapproved the newest request because the insurance company can “unilaterally” change the payments it gives to health care providers, which is included in its contracts.

“On the back end of the process, they reserved the right to change that number to their benefit and to health care providers’ detriment,” Hamm said. “That’s the first time an insurance company has done that in the history of North Dakota.”

Hamm said he also denied the request because “the benefits provided are unreasonable in relation to the premium charged.”

Blue Cross Blue Shield spokeswoman Denise Kolpack said the company is looking into what this will mean for the company and its 110,000 customers covered under its group policies.

“We found out about the decision the same time the public did this morning so we’re still analyzing the impact of that,” Kolpack said.

Hamm said he wants the insurance company to change the language in their contracts, which was the reason he denied the rate increase in July.

“The ball is back in their court,” Hamm said. “I’m hopeful they will change the language in the contract.”