PRC tries again with Blue Cross hearing

SANTA FE (KRQE) - A public hearing Wednesday was supposed to clear up questions about the 21 percent rate hike sought by Blue Cross Blue Shield, but some policy holders came away just as frustrated as before.

It will be another month before Blue Cross Blue Shield customers will know if a recent double digit rate hike will be overturned.

The Public Regulation Commission called its second public hearing after customers demanded to have their voices when the commission approved a 21.3% rate hike back in April.

It all started in December when the P.R.C. approved the first rate increase of 24.6%.

It was supposed to go into effect in April but customers protested.

The P.R.C then scheduled a public hearing for that same month. However, before that hearing even started the P.R.C, Blue Cross Blue Shield and the Attorney General's Office agreed on a 21.3% increase.

Some accused the state of a taking a back-room deal after it approved the rate hike. That protest led to another scheduled public hearing in August.

Wednesday morning, the hearing began with evidentiary testimony from the AG’s office, Blue Cross Blue Shield and the Department of Insurance.

The purpose of the hearing was to show evidence that the double digit rate hike was needed.

The attorneys for the healthcare provider said in the past three years it’s seen a loss of $20 million and that's why it wants to raise its rates.

Some in the audience said they wanted to see proof and even questioned how the company was able to buy a new building if their books are in the red.

The Attorney General’s Office said the healthcare provider did not provide evidence that a big rate increase was needed.

The Assistant Attorney General said they initially proposed a rate hike of 18% but compromised with Blue Cross Blue Shield and settled at an increased rate of 21.6%.

Customers were even more upset when public comment did not start until after closing arguments.

“I came here under the impression that this particular rate increase and public opinion would be taken into account, clearly I was mistaken,” Jack Huberman said.

Some audience members, including a State Senator, felt the hearing was one-sided.

“There has been no opportunity for anyone who does not agree that this is reasonable increase to ask questions about the evidence,” NM Senator Dede Feldman said.

“Somebody has to be in the middle and the reason I am here is I have no sense that there is anybody in the middle,” Ed Oppenheimer said.

More than half of those in attendance had left the hearing by the time public comment was heard.

Several Blue Cross Blue Shield representatives left as soon as public comment began.

Some customers said they’ve been hit by rate increases since 2004. Others are ready to appeal saying their insurance rate is higher than their social security return.

In about five weeks, Blue Cross Blue Shield, the Attorney General’s Office and the Department of Insurance will have to resubmit evidence for the rate hike that was approved.