BCBSVT’s Vermont Education Health Initiative (VEHI) Rate Filing for 2013.
For 2013 renewals and new enrollees, an average annual rate increase of 12.8% above current 2012 rates is being requested.
Vermont Education Health Initiative (VEHI) Rate Filing for July 1, 2013
VEHI is a large, non-profit purchaser of health care plans for Vermont's school employees. Blue
Cross Blue Shield of Vermont (BCBSVT), a Vermont company that exists to provide health
benefits and financing to Vermonters, is submitting this filing on VEHI’s behalf. Since VEHI has
a “Cost Plus” arrangement with BCBSVT, VEHI sets its own premiums using the rate
development information provided by BCBSVT.
There are 42,188 VEHI members (20,936 subscribers), as of August, 2012. BCBSVT has
calculated the renewal rates for the plan year beginning July 1, 2013. For the last several
years, VEHI has subsidized the premiums charged to its component groups. This is not
contemplated for the July 1, 2013 plan year. Therefore there will be an average increase of
12.8%, which results from the comparison of the unsubsidized renewal rates to the previous
year’s subsidized rates.
The components of the 12.8 percent increase are as follows:
5.2 percent: projected claims costs, as well as administrative and reinsurance expenses;
1.3 percent: new state and federal fees and assessments;
8.6 percent: elimination of a subsidy made possible over the last several years because VEHI
has drawn from its reserves to lower rates.
-2.3 percent benefit changes
Click here to make a coment.
Click attachement to view entire filing.
Once the actuarial opinion has been received by the Department and the Commissioner’s recommendation concerning this filing has been made, these documents will be found at the Green Mountain Care Board’s rate review website: http://gmcboard.vermont.gov/rate_review You can search the Board’s website using the SERFF tracking number at the top of this page. Once the decision has been issued by the Board we will update the status of the filing on our website. Please note there is a time lapse between when the filing is submitted to our Department and when the Board issues the decision.