NM Blue Cross Denied Another Rate Increase Just Days After Public Outcry

Petition delivery and press conference

Another victory for the people, thanks to the hard work of some dedicated health care advocates and your support of their petition! Less than a week after a coalition of health care advocates delivered the petition signatures of 1,500 New Mexicans calling for Blue Cross Blue Shield to withdraw its latest health insurance rate hike, the company learned that the increase was denied. 

According to a story in this morning's Santa Fe New Mexican, the company failed to support the rate hike in its application to the State Insurance Superintendent.

Franchini said he denied the 9.9 percent rate increase late last week, making the decision "with the assistance of our actuary and consulting actuaries."

... Franchini said he denied the request because "we felt like the company didn't support the medical trend in their rate request." 

The proposed hike, the second in less than a year, would have increased health insurance premiums another 9.9% on some 27,000 small business and individual policy holders whose premiums increased 21% earlier this year.

A coalition of health care advocates, led by Health Action New Mexico, Know Your Care New Mexico and the New Mexico Alliance of Retired Americans, delivered a petition carrying more than 1,500 signatures to the company during a news conference on Friday at the BCBS New Mexico headquarters. The success of the effort was applauded by those who would have had to cough up more money on premiums that had already been jacked up recently.

"Wow," said Ed Oppenheimer, a Blue Cross Blue Shield policyholder who would have been affected by the increase. "I'm very thankful that someone has had the sense to put a brake on this because this is not a good time [for a rate increase]. I'm amazed." 

According to the Santa Fe New Mexican article, Superintendent John Franchini and his team are working hard to set up the state's new consumer-friendly rate review process, which goes into effect in January 2012. The new process, mandated by the new Affordable Care Act, requires companies to publicly disclose the cost of providing services and to hold public hearings before any new rate increase can be approved. There is currently no provision for public input.