Rates for Catamount Health remain steady

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(Host) Vermonters enrolled in Catamount Health Care have received some good news.  The two insurance companies that administer the program both say their premiums will remain stable for the next few months.

But officials say this trend doesn’t necessarily mean that people who have private health insurance will be able to avoid higher premiums in the next 12 months.

VPR’s Bob Kinzel reports

(Kinzel) The Catamount program is administered by Blue Cross and MVP and every three months the companies review the rates they charge for their policies.

Since the program was launched in October of 2007, neither of the companies has filed for a premium increase. And that trend will continue through the start of the state’s new fiscal year.

Peter Sterling is the director of the Vermont Campaign for Health Care Security – a group that has actively promoted the Catamount program:

(Sterling) "We think this is great news because the number one reason Vermonters don’t enroll in Catamount Health – or VHAP or Dr. Dynasaur for that matter – is the high cost of premiums. So anytime we can keep the premiums affordable, we think more Vermonters will be able to stay on it and it will encourage more Vermonters to enroll. And that’s the key to solving our health care crisis."

(Kinzel) Banking and Insurance Commissioner Paulette Thabault says one reason that the insurance companies haven’t raised their rates is because their cost projections have been very accurate.

(Thabault) "Those assumptions held true and the utilization and the expenses related to the plan were about what was expected. So it means that the plan is priced appropriately at this time."

(Kinzel) Thabault also says that more people are enrolling in Catamount and the state’s other health programs because of the recession.

(Thabault) "We’ve certainly seen a steady increase in the membership. And when you have increases in numbers coming into the pool, it does create a better situation in terms of being able to spread the expense across the whole pool."

(Kinzel) Could the Catamount experience be good news for private health insurance customers?  It’s hard to tell.

Blue Cross vice president Kevin Goddard says overall health care expenses in Vermont are still rising well above the rate of inflation and he says premium increases are linked directly to the utilization experience of specific member groups.

(Goddard) "So that means that the overall cost of health care is going up, we’ll say, 8 to 10 percent. Within that, any group of Vermonters’ utilization might be more or less than that based on what their rates are. … So it’s very hard to talk generally about what any specific group of folks might look for in terms of cost increases."

(Kinzel) One of Blue Cross’ largest member groups, the state’s teachers, learned recently that their rates won’t go up at all next year. But Goddard says that doesn’t mean all groups will be this lucky.

For VPR News, I’m Bob Kinzel in Montpelier

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