Like other health insurance companies nationwide, Blue Cross Blue Shield of Michigan is citing growing medical costs as the primary driver for its need to raise rates on a number of its strategies.

The Detroit-based organization said it has asked Michigan regulators for fee raises for health plans covering subscribers under age 65, “but increases which are far lower than the company actually requirements to break even on these products,” in accordance to a statement.

BCBSM seeks a 7.8% improve for its individual “PLUS” group conversion products along with a 9.9% improve for its person “PLUS” products, both of which were released last year. Other person items and group conversion would obtain 15% and 12% raises, respectively.

The proposed increase would affect 189,000 individuals under age 65 buying their own wellness care coverage, the organization said. That group represents just over 4% of its total membership. The request does not have an effect on employer-based strategies or Medicare supplemental strategies purchased by senior citizens.

If approved by regulators, the new rates would go into impact in October 2010.

Andrew Hetzel, BCBSM vice president for corporate communications, said inside a statement that the insurer needs “to maintain pace with medical expenses,” but additionally noted the financial climate of the state and also the nation.

“In this extraordinary economic time, we also realize the pressures that very large premium raises put about the capability of people to maintain their coverage,” said Hetzel. “We are trying to strike a delicate balance between doing the right point for our company and our subscribers.”

The company mentioned even using the premium raises, it strategies to lose between $40 million and $60 million in the under age 65 person marketplace next year. In 2009, BCBSM mentioned it lost $94 million in that market, despite increases that went into impact that 12 months for some of its product.

The insurer also noted its medical loss ratio – the percentage of premium revenue associated directly to medical expenses – was 105% in 2009 for that market and is “well beyond” the thresholds of 80-85% needed by federal health reform law.

“Blue Cross is spending substantially a lot more on our individual strategies than we are collecting in premiums,” Hetzel mentioned. “This will continue to become the case, even if we are granted the full increases we’re requesting.”

BCBSM is also asking regulators to consider requiring all health insurers to publish their rate raises for the person marketplace so all Michigan residents and policymakers can see them. BCBSM may be the only Michigan wellness strategy presently needed to inform buyers of its fee requests, according to the organization.

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