An independent hearing judge today ruled that Blue Cross Blue Shield of Michigan only should raise its supplemental Medicare rates by 3.8%, not the 36.7% it had sought.
The final rate hike will be determined by Ken Ross, the state's insurance commissioner.
Ross has until Dec. 6 to make the final decision, unless appeals are filed. The rate hikes could take effect as early as Feb. 1.
If Ross lets the 3.8% rate hike stand, monthly premiums for Plan C of the Blue Cross plan, also known as Medigap, would increase $4.07 a month, from $107 to $111, not to $146, as Blue Cross had hoped, according to the Michigan Attorney General's office.
"This is great news for Michigan seniors," said John Selleck, a spokesman for Attorney General Mike Cox. He said the ruling, if upheld, would save $85 million for more than 210,000 seniors with the coverage.
The new rate hike comes on top of a 4.7% interim rate hike approved by state insurance Ross that took effect Oct. 1.
In a written statement, Helen Stojic, spokeswoman for Blue Cross, said the ruling "is part of a rate setting process that continues. We remain concerned with the hearing officer's interpretation of how the subsidy should be structured, and we will continue to advocate for a subsidy structure with the insurance commissioner that works effectively in providing for the long-term sustainability of affordable coverage for seniors."
The administrative law judge, Musette Michael, hearing the case, sided with the insurer on other issues, such as not having to use part of its $2.2 billion reserve fund to offset rate hikes.
Contact PATRICIA ANSTETT: 313-222-5021 or panstett@freepress.com To see more of the Detroit Free Press, or to subscribe to the newspaper, go to http://www.freep.com Copyright (c) 2009, Detroit Free Press Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
