Insurance regulator rejects bid for rate hike

AUGUSTA – Maine’s insurance superintendent announced Friday that he turned down a request by Anthem Blue Cross to raise rates for its individual HealthChoice plans.

A thorough review showed that the rate request – an average hike of 14.5 percent – was not justified, Allesandro Iuppa said.

There was a wide range in the proposed increase, from a decrease of 4.2 percent to an increase of 106 percent, he said.

“This was a complicated filing. There were a significant number of issues,” Iuppa said. “When looked at collectively, we felt that we couldn’t approve this filing.”

About 18,000 to 19,000 customers subscribe to the individual HealthChoice plans, the most widely used plan in Maine by those who don’t have insurance through an employer or group plan, Iuppa said.

Under Maine law, Iuppa does not have the authority to approve a rate different from the request that was filed. Iuppa said he fully expects Blue Cross to file an amended rate request.

Bill Cohen, spokesman for Anthem Blue Cross, said managers will be reviewing the numbers and Iuppa’s ruling.

“What we need to do is look at it, run the numbers, hear his concerns,” Cohen said. “It’s sort of a complicated jigsaw puzzle that we have to put back together.”