PENNSYLVANIA INSURANCE DEPARTMENT APPROVES INSURANCE RATES
HARRISBURG, Nov. 19 /PRNewswire/ -- The state Insurance Department today approved new rates for Capital Blue Cross and Blue Cross of Northeastern Pennsylvania. The new rates are effective Jan. 1, 1994. Capital Blue Cross received rate increases for the hospital insurance portion of Security 65 Plans B, C, and H. Pennsylvania Blue Shield did not seek rate increases for its portion of the Security 65 plans. Because Blue Shield did not request a rate change in its portion of the plans, the overall rate increase that consumers will see on their bills is lower than the approved Blue Cross increase. The Capital Blue Cross Security 65 rate adjustments approved were: -- A 7.2 percent decrease ($1.6 million) for approximately 55,000 subscribers covered by Security 65 Plan B. Capital Blue Cross requested a 3.9 percent decrease ($900,000). Combining the Capital Blue Cross rate decrease with the Blue Shield portion of the plan, consumers will see a 3.5 percent decrease on their total bills. -- An 18.5 percent increase ($5.6 million) for 52,000 Plan C subscribers. The company requested a 23.5 percent increase ($6.8 million). Combining the Capital Blue Cross rate increase with the Blue Shield portion of the plan, consumers will see a total increase of 10.2 percent. -- A 17.4 percent increase ($4.9 million) for approximately 33,600 Plan H policyholders. Capital Blue Cross requested a 21.7 percent increase ($6.1 million). Combining the Capital Blue Cross rate increase with the Blue Shield portion of the plan, consumers will see an 11.92 percent increase. The Security 65 Medicare supplements -- also known as "medigap" plans -- provide benefits beyond federal Medicare insurance, covering deductibles and co-payments, and in some plans, prescription drug coverage. No rate change was requested for Plan A. In addition to the Security 65 plans, Capital Blue Cross requested a 9.7 percent increase ($800,000) for its nongroup major medical policies. The department granted a 6.9 percent increase ($600,000) affecting over 15,000 policyholders. The non-group major medical policies cover people who purchase health insurance individually rather than through group or employer plans. Blue Cross of Northeastern Pennsylvania requested an increase which will affect 9,100 nongroup major medical policies. A 19.1 percent increase ($600,000) was sought; the department granted a 15.8 percent increase ($500,000). Because the Blue Shield portion of these policies will not increase, the overall percentage increase in total premium will be lower than the Blue Cross increase. Blue Cross of Northeastern Pennsylvania decided to withdraw rate requests for its Medicare supplement policies. Its medigap rates will not change for the next year. Capital Blue Cross has policyholders in the counties of Adams, Berks, Centre, Columbia, Cumberland, Dauphin, Franklin, Fulton, Juniata,
Lancaster, Lebanon, Lehigh, Mifflin, Montour, Northampton, Northumberland, Perry, Schuylkill, Snyder, Union and York.
Blue Cross of Northeastern Pennsylvania has policyholders in the following counties: Bradford, Carbon, Clinton, Lackawanna, Luzerne, Lycoming, Monroe, Pike, Sullivan, Susquehanna, Tioga, Wayne and Wyoming. /delval/ -0- 11/19/93 /CONTACT: Leslie Osborn of the Pennsylvania Insurance Department, 717-787-3289/
CO: Pennsylvania Insurance Department ST: Pennsylvania IN: INS SU:
JM -- PH040 -- 6534 11/19/93 17:21 EST