May 22nd, 2009

Reports the Philadelphia Inquirer:

Independence Blue Cross is seeking rate increases in the 20-to-50 percent range for 33,000 nongroup policyholders.

Although that’s less than 2 percent of the two million IBC policyholders in the Philadelphia region, they tend to be those who do not have coverage through their employers and would be more likely to go uninsured if they decide that they can’t afford health-insurance premiums.

…

[Elizabeth Williams, spokesperson for IBC] confirmed that IBC had filed for the increases without any public announcement or notice to the affected policyholders. It is the company’s practice, she said, to wait until the state Insurance Department takes action on the rate requests and then notify policyholders.

IBC asked for the increases to take effect July 1.

Melissa Fox, a spokeswoman for the state Insurance Department, said the public would have about 30 days to comment on the rate request. State officials would then review the filings and act on IBC’s requests.

…

The proposed rate increases would affect three different groups of IBC policyholders:

* Nongroup Personal Choice subscribers, a group of about 20,000 customers ranging from singles in their 20s to families with children. The lowest rate in this category, for a single person under 29 years old, with standard-option coverage, would climb from $162 a month to $207 a month. The highest rate, for a family with high-option coverage and adults over 60 years old, would climb from $2,567 a month to $3,214 a month.

* Nongroup Special Care Hospital coverage. Williams said the plan was developed for low-income households, now covering about 10,000 people. They’ll face a 27 percent increase in insurance costs.

* Nongroup Basic Blue Cross Hospital coverage. Williams said the boosts would affect about 2,800 people, mostly elderly, who would face increases ranging from 24 to 43 percent.

Read more at the Inquirer.