GMCB Approves Health Insurance Rate Increases of 11.7% for Blue Cross and 18.3% for MVP

GMCB Approves Health Insurance Rate Increases of 11.7% for Blue Cross and 18.3% for MVP

Vermont Business Magazine The Green Mountain Care Board (GMCB) issued rulings Thursday requiring Blue Cross Blue Shield of Vermont (BCBSVT) and MVP Health Plan, Inc. in 2023, they cut the premiums they wanted to charge individuals and small businesses for health insurance plans. BCBSVT requested a 15.4% increase and 11.7% in the small group (business) plan; MVP asked for a 23.4% increase and got 18.3%. The rate increase for individuals was similar (see below). Despite the cuts, the rates are still the highest approved since August 2019.

As of March 2022, approximately 72,000 Vermonters were enrolled in these plans.

The large rate increases proposed by MVP and BCBSVT this year were driven by several factors, including rising specialty drug costs and higher costs paid to health care providers to provide services, which in turn are driven by inflationary and workforce pressures that many face . branches of the economy.

After careful review, the Board, acting within its statutory authority and after considering a number of statutory factors, has reduced the proposed BCBSVT and MVP rates by the amounts shown in the following tables:

Small group – average annual rate increase in 2022

insurer

Rate Request (PMPM)**

Committee Approved (PMPM)**

BCBSVT

15.4% ($94 PM)

11.7%* ($71 PM)

MVP

23.4% ($135 PM)

18.3%* ($106 PMPM)

Individual and family – average annual rate increase from 2022

insurer

Rate Request (PMPM)**

Committee Approved (PMPM)**

BCBSVT

14.9% ($104 PM)

11.4%* ($79 PM)

MVP

24.4% ($164 PM)

19.3%* ($130 PMPM)

*These rate increases are averages across different benefit plans with different levels of cost sharing. For the small group, approved plan-level increases range from 9.1% to 15.3% for BCBSVT and 10.5% to 21.5% for MVP. For individual and family plans, approved plan-level increases range from 8.8% to 15.3% for BCBSVT and 11.3% to 26.3% for MVP.

**Per Member Per Month (PMPM) is the dollar amount a member pays each month for a health care plan.

Health care subsidies and other resources

  • About 5,500 Vermonters could still save money on their monthly premium in 2022 by enrolling through Vermont Health Connect (VHC). Use VHC’s plan comparison tool to find out if you qualify for a subsidy.
  • Vermonters can use the plan comparison tool starting October 14, 2022 to compare plans for 2023. Open enrollment for 2023 plans begins November 1, 2022.
  • As of August 4, 2022, it remains uncertain whether Congress will renew for 2023 the expanded premium tax credits originally made available through the American Recovery and Retirement Plan Act (ARPA). Information about ARPA and how it affects you and your eligibility for Premium Assistance is available here.
  • If you have questions about your health insurance or access to health care, contact the Legal Assistance Office of the Vermont Health Care Advocate at 1-800-917-7787.

Last year’s filings reviewed by the board were heavily impacted by the 2022 “merger” of the individual and small group health insurance markets, which was done to take advantage of the enhanced subsidies available to individuals under ARPA. Demerging the markets resulted in a decrease in small group premiums (BCBSVT -6.2%; MVP 0.8%) and an increase in individual premiums (BCBSVT 4.7%; MVP 12.7%) compared to what would have been otherwise, with increased subsidies compensating for increased premiums in the individual market.

8/4/2022. Montpelier, VT – The Green Mountain Care Board

Leave a Comment

Your email address will not be published.