888-765-5400BCBSNC Questions & Answers Part II
What rates are you currently quoting?
We are currently quoting rate increases for our HSA product averaging slightly over 3 percent and employer group rate increases that are averaging in the mid teens (effective for the first quarter of 2010). Our rates are approved by the North Carolina Department of Insurance. The rates of specific employer groups can vary because of a number of factors that affect the potential medical costs of those groups. The factors include the health circumstances of employees, age and gender of the workforce, benefit levels chosen and the medical costs of the counties in which the employees live.
What about individual rates?
We are currently quoting individual premium increases averaging 12.24 percent (for the first quarter of 2010). Our average rate increase for the HSA product is slightly over 3 percent. Our rates are approved by the N.C. Department of Insurance. Rates for individuals can vary because of a number of factors that affect the potential medical costs of those groups. The factors include the age and gender of the workforce, benefit levels chosen and the medical costs of the counties in which the employees live.
Do you plan to do what Anthem Blue Cross in California did by raising rates 39 percent?
Our rates are largely driven by the rising cost of health care services (and utilization).
A key difference is that the California DOI does not approve rates in advance as the NCDOI does. NC DOI evaluates rate requests according to long established regulatory and actuarial standards well in advance.
Will you have to raise premiums because your profits are lower?
Premiums continue to be driven by the anticipated medical costs of our customers. We spent nearly 87 cents of each premium dollar on the medical care of our customers in 2009. Much of the rest is customer service and technology to support our products and service. It’s important to note that we run our business on a long-term basis. Why don’t you give your customers a price break because of the recession? We understand that many North Carolinians are experiencing tough times and we believe there are options like Blue Advantage, Blue Options 1-2-3 and Blue Options HSA that might meet their health care needs. One example of saving customers money is the generic copay waiver we had for the first half of 2009 and for certain members with chronic conditions. BCBSNC, over a period of 4 years, has encouraged the use of generic drugs to help hold down medical costs and make it easier for consumers to afford their medications and stick to the regimen prescribed by their doctor. The use of generic prescriptions went up nearly two percentage points from December 2008 to December 2009 to 68 percent. The 2009 generic copay waiver program applied to nearly 1 million BCBSNC customers. It’s important to understand that premiums are driven by a variety of factors including the
anticipated medical costs of our customers and claims experience. The rates are approved
months in advance by the North Carolina Department of Insurance based on long-established regulatory and actuarial standards. With the costs of health care growing in North Carolina, BCBSNC customers should be assured that the company is financially stable. And our customers need to know they can rely upon us in tough times.
The above information is from a March 1st, 2010 News Release from Blue Cross Blue Shield North Carolina.
For more information on health insurance coverage in North Carolina, please visit our website at www.nchealthplans.com or call our toll free number 888-765-5400 and speak with one of our qualified agents. Our agency provides coverage for health insurance in North Carolina through Blue Cross Blue Shield of North Carolina (BCBSNC). You may qualify for a 15% healthy lifestyle discount if you are in excellent health. Call us for details.