Blue Cross Blue Shield Increases Rates to Nearly 3,000 MembersThe past couple of days nearly 3,000 members of Blue Cross Blue shield have been seeing at least a 20 percent increase in their healthcare cost.
The past couple of days nearly 3,000 members of Blue Cross Blue shield have been seeing at least a 20 percent increase in their healthcare cost.
"Effective October first 2010 your monthly health premium will be 346.10," said David Kary who had is insurance rates raised.
David Kary just found out that he is going to have a increase in his monthly insurance premium of nearly a 100 dollars.
"They said that there was, they hadn't had a rate increase in about two or three years so they just felt that it was time to up the rates," Kary said.
Denice Kolpack with Blue Cross Blue Shield says the increase in rates went to those in the conversion and Student lines of insurance which effected nearly 3,000 members. Many policy holder will see about a 20 percent increase in October....some increases are even higher.
"All of our rates go through the department of insurance for approval as you know our rates requests have to be based on actually sound data which is a combination of the claims experience and project legalization and the cost associated with paying those claims,"said Denice Kolpack who works for Blue Cross Blue Shield.
Kolpack says those claims are going up due to the increased cost of healthcare services.
"Its also an illustration of the real problem and that's exulting healthcare costs as members use more and better services the costs more the premiums have to increase to cover those increasing costs," Kolpack said.
With this jump in rates, Kary says its going to be hard for him to stay above the poverty line with all of his expenses.
"This month it puts me with just what I have after my expenses, it puts me basically at the poverty level but with the way the government programs are set up you cant get any assistance because you make over the poverty level," Kary said.
Blue Cross Blue Shield says that they will be working with 300 of the Conversion plan customers to get their newly increased premiums lowered and the increase was due to a loss in more than 12 million dollars in 20 months.