ARCHAMBAULT CALLS ON HEALTH COMMISSIONER KOLLER TO TURN DOWNBLUE CROSS AND TUFTS NEW RATE HIKE PROPOSALS

Steve Archambault, Democratic candidate for Attorney General, today called on Health Insurance Commissioner Chris Koller to turn down Blue Cross and Tufts Health Plan's new double-digit rate hike requests.

Archambault said, "Instead of moving to saddle hard pressed Rhode Island families and businesses with another double-digit rate hike, Blue Cross and the other Health Insurers should produce significant cost-cuts beginning with a reduction in top Executive salaries. I urge Commissioner Koller to turn them down flat." 

Archambault went on to say, "We need a top to bottom review of all Health Insurer expenditures All expenses should receive strict scrutiny."

Archambault pointed to the fact that the CEO of Blue Cross, James E Purcell earned over $900,000 in compensation in 2008 as an example of an expenditure that need to be reexamined, noting that Blue Cross is a non-profit.

Blue Cross Administrative expenses are higher than the New England average according to a study conducted by Health Insurance Commissioner Koller's office.

Blue Cross is proposing for next year an increase of 13..4% for companies with more than 50 employees and an increase of 12.4% for companies with 50 employees or fewer. Tufts is proposing a rate hikes of between 11% and 12%.

Blue Cross and Tufts were recently granted rate hikes of nearly 10% for both small and large groups as well as an increase of a little over 6% for direct pay plans, which are purchased by Rhode Islanders who do not receive health insurance from their employer or other group.

Archambault has led the fight against rate hikes by Blue Cross and other health insurers repeatedly calling on Commissioner Koller to re-examine the basis of the requests and to give administrative expenses strict scrutiny.