Commerce and Insurance Commissioner Julie Mix McPeak approved the rate increases last week for Chattanooga, Tenn.-based BlueCross BlueShield of Tennessee, Bloomfield, Conn.-based Cigna and Louisville, Ky.-based Humana.
On average, BCBS of Tennessee will raise rates 62 percent, Cigna will increase rates 46.3 percent and Humana will raise rates 44.3 percent on Affordable Care Act exchange plans.
The legislators said Tennessee’s rate increases are the highest in the nation, and rate increases in other states are much lower, according to the report. In addition, they demanded to know why Ms. McPeak did not negotiate rates. However, the commissioner defended her actions, saying the state’s exchange is “very near collapse,” and her department feared if insurers were not granted the rates to offset million dollar losses, they would exit the exchange.
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