MEDIA RELEASE

FOR IMMEDIATE RELEASE:                 
Feb. 16,  2010

Contact: Rob Horowitz
Phone:   632-0686

Steve Archambault, Democratic candidate for Attorney General, today  called for a new emphasis on cutting administrative costs and sounded his opposition to rate hikes proposed by Blue Cross & Blue Shield of RI, United Health Care of New England and Tufts Health Plan for small and large group employers. 

Steve Archamabault said,  "These proposed double digit rate hikes pose a serious potential economic hardship to over  300,000 Rhode Islanders.  Rhode Island families and businesses are already squeezed as our state faces the most difficult economic situation in at least a generation."

Pointing to a recent study released by Health Insurance Commissioner Chris Koller’s office that ranks Rhode Island Health Insurers' Administrative expenses higher than the average in New England, Archambault called on Health Insurance Commissioner Koller to give administrative costs stricter scrutiny.

Steve Archambault said, "There needs to be a new emphasis on cutting administrative expenses and other costs before seeking rate hikes."

Blue Cross is requesting an average increase of 11.6% for small groups and 14.6% for large groups. United Health Care is requesting a rate hike of 10.6% for small groups and 4% for large groups and Tufts Health Plan is requesting an increase of 9.6% for small groups and 9.3% for large groups.  Small groups are  defined as employers with 50 employees or less and large groups are defined as employers with 500 employees or less.  Blue Cross covers the overwhelming majority of small and large group employees.

Steve Archambault will submit public comment to the Office of Health Commissioner on the need to put greater emphasis on reducing administrative costs in the factors that determine the acceptability of rate increases..  The Commissioner is  providing a public comment  period at today's meeting of the Health Insurance Advisory Council and is accepting written public comment through Feb. 22.

Archambault has consistently voiced his strong opposition to Blue Cross' proposed rate hikes for direct-pay plans which are purchased by Rhode Islanders who do not receive health care from their employer or other group as well as Blue Cross' proposed rate hikes for small and large groups, calling on the Health Insurance Commissioner to send Blue Cross back to the drawing board.

Archambault, who serves as a Councilman in Smithfield , would bring a broad legal background to the Attorney General’s office. His experience as a police officer, local Prosecutor and defense attorney gives him a first-hand understanding of all elements of the criminal justice system.