Health Commissioner Corey King discusses insurance rate hikes and Medicaid impacts in Rhode Island

The House Committee on Finance Subcommittee convened on March 19, 2025, to discuss key issues surrounding health insurance regulation in Rhode Island. The meeting featured testimony from Corey King, the state's health insurance commissioner, who provided an overview of the office's functions and recent activities.

Commissioner King began by acknowledging the thorough presentation by Ethan, which outlined the office's regulatory responsibilities. He highlighted that the office oversees commercial health insurance companies, reviewing regulatory filings that increased from 791 in February 2023 to 821 in February 2024. These filings include complex health insurance rate reviews, particularly for major medical insurance, which are conducted annually with the assistance of actuaries. Over the past four years, the office has successfully reduced requested health insurance rate hikes by over $100 million.

King also discussed the office's role in ensuring that health insurance coverage contracts comply with state laws and mentioned ongoing efforts to assist consumers through the RIPEN helpline. He noted a current study on dental loss ratios and the development of a data collection template for dental insurers, with a report expected in 2026 regarding physician-administered drugs. Additionally, he addressed a proposal in the governor's budget that would empower the office to review primary care reimbursement rates.

During the meeting, Representative Neto inquired about the percentage increase in health insurance rates over the past few years. King responded that the last year had seen significant challenges, with average rate increases of about 10% in the small and large group markets, and approximately 8% in the individual market. He noted that health insurance premiums have quadrupled over the last 20 years, emphasizing the importance of maintaining cost controls.

The discussion also touched on the impact of Medicaid reimbursement rates on private insurance costs. Representative Neto expressed concerns that low Medicaid rates could lead to higher charges for private insurance, a point King acknowledged as a valid concern. He explained that commercial payers often bear the brunt of higher costs due to the lower rates set for Medicaid, which can lead to cross-subsidization in the healthcare system.

The meeting concluded with a recognition of the complexities involved in health insurance pricing and the ongoing efforts of the health insurance commissioner’s office to navigate these challenges. The subcommittee plans to continue monitoring these issues as they develop, ensuring that Rhode Islanders have access to affordable health insurance options.