12/08/2010
Our response to OIC news release regarding rejection of January 2011 rates for Individual plans - Regence EvolveSM
Earlier this year, we filed a request with the OIC for a rate increase for our Regence Evolve Individual plans. The increase was to cover increased costs associated with certain added benefits: preventive care, removal of the lifetime maximum, and guaranteed issue for children. At that time, we complied with an OIC request to delay implementation of these benefit changes until Jan. 1, 2011. We learned from the OIC this week that those new rates have been rejected.
While we are waiting for additional details from the Commissioner's office, we're disappointed that they chose to reject the rate filing and issue a news release rather than discuss their concerns with us directly. It's important that we reach a resolution on how best to pay for these increased benefits. We believe our rates are actuarially sound and will follow the appropriate process to understand the OIC's concerns and work toward approval.
In the meantime, as part of a previously planned product transition, those members on discontinued Individual plans will move to our Evolve Individual products on Jan. 1, 2011, with previously approved rates. As part of this change, we will, like other Washington carriers, adjust rates on a per-child basis rather than a single, consolidated family rate. We believe this to be a more equitable way to distribute costs across the Individual pool.
We remain committed to working transparently and collaboratively with the Insurance Commissioner to reach a solution that will allow us to continue to serve this market and provide Individual members with high-quality, affordable care.
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