State Regulators Approve Regence Rate Increase

May 8, 2009 -- State insurance regulators approved another wallet busting premium increase today. Regence BlueCross BlueShield of Oregon will be allowed to increase premiums on individual health plans by 14.7 percent in July.

Regulators with the Department of Consumer and Business Services in its decision cited healthy surplus levels, $480 million in 2008, for denying the company's initial request for a 19 percent average increase.

The move affects about 79,000 people. Consumer advocates had submitted hundreds of comments to officials at the Oregon Insurance Division mostly saying the increase was unfair.

Last year, Regence raised premiums on individuals by 26 percent, which caused demonstrations at its corporate offices in Portland. An appeals process is still under consideration by an administrative law judge. The rate increase raised an estimated $30 million and Regence lost 7 percent of its individual plan holders.

The hearing also led in part to a rate regulation reform bill at the state legislature sponsored by Rep. Chip Shields (D-Northeast Portland)

Regence CEO Mark Ganz is the highest paid health insurance executive in Oregon.