Attorney General Neronha objects to proposed increases to 2026 statewide healthcare insurance rates
PROVIDENCE, R.I. – Attorney General Peter F. Neronha announced today the filing of objections with the Office of Health Insurance Commissioner (OHIC) in response to requests to increase health insurance rates in 2026 filed by multiple health insurers in the individual market. Altogether, these requests would impact more than 45,000 Rhode Islanders enrolled in individual group insurance plans.
Attorney General Neronha filed post-trial briefings that objected to proposed rate increases of nearly 30% by Blue Bross Blue Shield of Rhode Island (BCBSRI) and nearly 22% by Neighborhood Health Plan of Rhode Island (NHPRI) pursuant to his statutory authority to protect and advocate for Rhode Islanders. These objections ask OHIC to protect Rhode Islanders from paying more than their fair share for health insurance by considering more than the numbers and addressing the real economic situation facing the state and the nation in deciding whether to grant rate increases.
The Attorney General is directed by statute to represent the interests of consumers in public rate hearings when an insurer in the individual market proposes to raise rates more than 10%. This year, the Office advocated on behalf of consumers in these hearings, introducing testimony and reports by an expert health economist which demonstrate the potential negative consumer impacts of granting the rate requests and offer ways to reduce the requested rates. The Attorney General’s expert witness also spoke to the detrimental impact these rates may have on Rhode Island’s health care providers, the state’s health care system, and insurance markets.
Some of the major affordability concerns raised by Attorney General Neronha stem from federal changes that are set to take effect at the end of 2025. Since 2021, many individuals and households purchasing health coverage under the Affordable Care Act have received enhanced premium tax credits, which have lowered the sticker price shown to consumers when they purchase insurance from HealthSource RI. While these subsidies have benefited consumers, they have also obscured underlying premium increases in recent years. Because the Republican majority in Congress opted not to renew these tax credits in their “Big Beautiful Bill,” the current credits are set to expire in 2026, and many consumers will receive fewer or no subsidies. Therefore, it is vital that any negative impact on consumers be mitigated by denying the insurers’ exorbitant rate requests.
From the Briefings
Consumer impact:
- We estimate that BCBSRI’s proposed rate increase would cost individuals an additional $2,500 and families an additional $7,000 in annual premiums. NHPRI’s increase would cost an additional $1,000 for individuals and an additional $4,000 for families.
- When people cannot afford their health insurance, they lose access to health care. This loss of access is a real and substantial risk if the rate is approved as requested. Dr. Whaley testified that there might be a scenario where “individuals no longer get preventative primary care services. They no longer fill prescription drugs for chronic conditions.” This lack of access would “directly lead to harm in patient health[.]”
Health care system impact:
- When those without insurance need health care, they will likely seek uncompensated care. The Rhode Island health care delivery system is “an insurer of last resort,” and would experience an increase in uncompensated care costs if the proposed rate increase is granted.
- Hospitals pay an average of $900 for each additional uninsured person per year.
- Our hospitals are already in a state of financial crisis, any additional burden would exacerbate the crisis.
- It cannot be the sole obligation of individual health care consumers to pay more every year into a system that is failing. The system, in turn, cannot assume any more financial responsibility for uncompensated care.
- Granting the proposed rate increase would exacerbate the current dire situation of health care in Rhode Island and ripple through the system.
For more information and to review the briefings, please visit our website.