Blue Cross Blue Shield hikes rates as health care costs rise
Affordable health insurance is becoming more distant. Blue Cross Blue Shield is hiking rates for their most popular health insurance plan, Medigap. Rates starting in October are going up 4.7 percent, and the impact will be felt by our senior citizens. Blue Cross currently insures 210,000 seniors in Michigan.
According to Helen Stojic, Blue Cross spokeswoman, beginning October 1, billing for Blue Cross Blue Shield Medigap health insurance will go up from $107.09 to $112.12 per month. The rate hike was approved by Ken Ross, Michigan’s health insurance commissioner.
Blue Cross Blue Shield is also seeking to further raise senior health insurance rates by thirty one percent as they await a hearing for approval. If the current rate hike is deemed unnecessary, seniors could end up with a refund.
Blue Cross Blue Shield health insurance is also trying to raise health insurance premiums for the non-elderly, claiming $1 billion in losses through 2011. Blue Cross has a $2.4 billion surplus, but earlier this year a judge ruled that the insurance company should not have to tap into that to offset rate hikes.
Next year Blue Cross Blue Shield of Northeastern Pennsylvania is also planning on raising their rates. The increase in health insurance premiums are expected to generate more than $9 million in annual revenue from eight of the health insurer’s plans. One of the plan’s rates will increase in October, and the rest will go into effect next year. Blue Cross Blue Shield of Northeastern Pennsylvania is a non-profit health insurer. Michelle Davidson, a Blue Cross spokeswoman says the rate hikes are the result of rising health care costs that she calls “unrelenting”. The hardest hit subscribers will be those carrying the BlueCare Cooperative Plan. Blue Cross Blue Shield is asking for a 48.9 percent hike in monthly rates.
Expect health insurance rates to keep going up. Health insurance premiums can be expected to become increasingly more expensive as health care costs continue to rise.