Wellmark to raise individual plan rates by at least 10.8 percent in April

Iowans with individual Wellmark Blue Cross and Blue Shields policies will see their rates rise from 10.8 percent to 15 percent next April if premium rates filed with the state this week are approved.

Last year, Wellmark's roughly 18 percent increase was startling enough to prompt Iowa Gov. Chet Culver to ask Wellmark to hold off on the increases until the state did an independent evaluation of Wellmark's justification for the increase. The increases were found to be justified and allowed to take effect.

The vast majority of individual policy holders – some 46,000 – would see their rates go up a more modest 10.8 percent effective April 1, 2011, under Wellmark's filing.

“The level of increase is a lot less, so we're very thankful for that,” Wellmark spokesman Rob Schweers said.

The average individual premium paid by policyholders in Wellmark's individual plans in Iowa is $184 per month, making their annual premium about $2,208. Individuals may pay more or less than that depending on their age, the type of plan they have and other factors, Schweers said.

Only about 2,500 policyholders are slated to pay a 15 percent increase. They are enrolled in the company's Blue Transitions plan. Another 3,000 will receive an 11.3 percent incrase. They are in the company's Basic and Standard policies.

Wellmark emphasized medical utilization and lifestyle choices as the main culprits behind the increases.

“We're just paying the price of our lfiestyles,” Schweers said, emphasizing the health cost implications of Iowans being afflicted by health conditions such as obesity and diabetes in greater number and at younger ages. The cost of drugs to treat those conditions have increased significantly, the company said.

Under the new health care reform law, insurers must spend at least 80 percent of premiums on health care services beginning Jan. 1. The company said it has exceeded that requirement in the past, and with the rate increases has budgeted to meet the requirements in 2011.

The April premium increases do not apply to policyholders enrolled in employer-sponsored Wellmark plans or its Medicare supplement plans.