Dover – Insurance Commissioner Matt Denn notified Delaware consumers Friday of misleading information regarding the state’s involvement in health insurance rates contained in rate increase notices sent by Blue Cross Blue Shield of Delaware.

 

Commissioner Denn said that the misleading information suggested that the State of Delaware had some ability to control the rate increases that Blue Cross was imposing on its policyholders.

 

Many Blue Cross customers have received notices in recent weeks containing substantial rate increases, some in excess of 20 percent. The notices state that the rate increases are “subject to review by the Delaware Department of Insurance.” However, under Delaware law, the Department of Insurance is not permitted to review health insurance rates for anything other than technical compliance with the law.  The Department has no authority to turn down health insurance rate increases that it believes to be excessive.

 

“This misleading statement by Blue Cross is all the more egregious because the Department of Insurance has actually been seeking permission from the General Assembly for the last four years to turn down excessive health insurance rate increases, and Blue Cross has successfully lobbied against those efforts,” Commissioner Denn said.

 

Because of timeframes for notice under Delaware law, Commissioner Denn cannot schedule a hearing on this matter before he leaves office on January 6, 2009.  Therefore, his successor will need to determine whether to take formal action against Blue Cross for this mailing.

 

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