August 15, 2025

Rhode Island Faces Major Health Insurance Rate Hikes

News Summary

Rhode Island is encountering significant health insurance rate increases as federal tax credits set to expire threaten coverage for 40,000 residents. Proposed hikes from major insurers, including a 28.9% increase from BCBSRI, could push average individual premiums up by $2,500. With Attorney General Peter Neronha opposing these proposals, there are concerns about the impact on the state’s healthcare system and affordability issues for residents. The looming expiration of tax credits could exacerbate problems, possibly leaving 13,000 residents without insurance. The state health insurance commissioner, Cory King, is tasked with balancing cost and access.

Rhode Island is facing significant health insurance rate hikes as the expiration of federal tax credits looms at the end of the year. Approximately 40,000 residents depend on these credits to afford their healthcare coverage, which will disappear on December 31, increasing financial pressure on both insurers and consumers. Cory King, the state health insurance commissioner, now faces the difficult task of navigating rising costs for insurance while ensuring accessibility to healthcare for residents.

Major insurers in the state, including Blue Cross Blue Shield of Rhode Island (BCBSRI) and Neighborhood Health Plan of Rhode Island (NHPRI), have put forth proposals for substantial rate increases for over 50,000 individuals purchasing insurance through HealthSource RI. BCBSRI is seeking a staggering 28.9% increase, which would result in an average rise in individual annual premiums by $2,500 and an increase of nearly $7,000 for average households. Meanwhile, NHPRI has requested a 21.2% increase, bringing additional costs of approximately $1,000 annually for individuals and almost $4,000 for families.

Attorney General Peter Neronha has voiced opposition to these proposed increases, asserting that they threaten to deteriorate Rhode Island’s already fragile healthcare system. His office warns that permitting such hikes could exacerbate existing issues, leaving many residents unable to afford necessary coverage. Historically, King has tended to approve rate increases that are lower than what insurers ask, though he has the authority to reject proposals if they are not in the public’s interest.

The impending expiration of federal tax credits is anticipated to cut nearly $40 million in subsidies for Rhode Islanders, which will likely lead to an increase of 85%, or $104 monthly, in average premiums. By some estimates, around 13,000 residents may be pushed out of the insurance market due to affordability issues. Furthermore, the departure of younger and healthier individuals from the insurance pool could amplify costs for those remaining, primarily older and sicker patients, further straining the healthcare system.

Several contributing factors underlie these proposed rate increases. Rising medical treatment costs account for about 10% of BCBSRI’s requested hike, while a new state mandate requiring a 30% increase in reimbursement rates for primary care providers adds an additional 20% to BCBSRI’s proposal. These financial stresses on providers have been exacerbated by lower reimbursement rates than those seen in neighboring states and increasing operational costs, leading to worries about the financial viability of various healthcare institutions, which may face closure due to instability.

The potential implications of rising insurance rates are not limited to Rhode Island; projected average premium increases for the broader market across the United States are around 26% for the upcoming year, indicating a widespread trend affecting many consumers. In the context of small and large group plans, proposed rate hikes are still under review, with King expected to issue a decision in September. BCBSRI has submitted a 22.2% increase for small group plans, and other insurers, such as NHPRI and UnitedHealthcare, have requested increases around 20.3%.

In the large group market, requests vary significantly, ranging from 13.5% to 26.4%. It is noteworthy that self-funded employers, encompassing about 65% of employer-sponsored insurance coverage, are not subject to these increases. King has underscored the importance of finding a balance in rate approvals to both secure insurers’ financial health and maintain access to care for Rhode Island residents.

As Neronha’s office plans to analyze insurer contracts further, it remains to be seen how these critical rate hikes will play out and what actions will be taken to safeguard the healthcare needs of residents in Rhode Island.

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Author: STAFF HERE PROVIDENCE WRITER

PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.

STAFF HERE PROVIDENCE WRITER

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