From The Santa Fe NewMexican - by Staci Matlock - Unless a proposed health insurance rate hike is overturned by interim state Insurance Superintendent Johnny L. Montoya, 7,100 Santa Fe County residents will see a double-digit increase their Blue Cross Blue Shield of New Mexico premiums as of October. Blue Cross settled on a 21.3 percent increase in April with the Insurance Division of the state Public Regulation Commission. The company says it needs the increase to cover higher medical costs and more claims among 40,000 New Mexicans covered under 12 individual health plans. Consumers Union, publisher of Consumer Reports, says the company should consider using a portion of its healthy surplus — a "rainy day" reserve — to offset medical costs and lessen the premium hike. But while state law may prohibit the insurance superintendent from considering surpluses in a rate case, his division's staff attorneys are reluctant to say so on the record. "The crux of this issue really is a question of statutory interpretation," said Gerald Garner Jr., a division spokesman. "Since the BCBS hearing is still pending and because the superintendent of insurance has not taken a position on the matter yet, it would be imprudent for us to respond or elaborate further on this subject until the conclusion of the hearing."
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Despite healthy cash reserve, Blue Cross Blue Shield wants steep premium increase
From The Santa Fe NewMexican - by Staci Matlock - Unless a proposed health insurance rate hike is overturned by interim state Insurance Superintendent Johnny L. Montoya, 7,100 Santa Fe County residents will see a double-digit increase their Blue Cross Blue Shield of New Mexico premiums as of October. Blue Cross settled on a 21.3 percent increase in April with the Insurance Division of the state Public Regulation Commission. The company says it needs the increase to cover higher medical costs and more claims among 40,000 New Mexicans covered under 12 individual health plans. Consumers Union, publisher of Consumer Reports, says the company should consider using a portion of its healthy surplus — a "rainy day" reserve — to offset medical costs and lessen the premium hike. But while state law may prohibit the insurance superintendent from considering surpluses in a rate case, his division's staff attorneys are reluctant to say so on the record. "The crux of this issue really is a question of statutory interpretation," said Gerald Garner Jr., a division spokesman. "Since the BCBS hearing is still pending and because the superintendent of insurance has not taken a position on the matter yet, it would be imprudent for us to respond or elaborate further on this subject until the conclusion of the hearing." Read more
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