Health Insurance Rate Watch Project

OSPIRG’s Health Insurance Rate Watch Project pushes health insurers to do more to cut waste and focus on prevention before they raise premiums. 

Cutting waste from insurance premiums

Health care still costs more than it should. One study estimates that in 2009, $765 billion, or one-third of all health care spending, was wasted on things that did not make us healthier. [1]  Some of that estimated waste included:

  • Overinflated medical prices: $105 billion in waste. Recently, hospitals have been caught charging outrageous prices, such as $1000 for one toothbrush and $140 for a single Tylenol. [2]
  • Duplicative treatments: $8 billion in waste. This includes the extra costs of having to get the same x-ray or MRI twice because health care is poorly coordinated.
  • Excessive administrative costs and paperwork: $190 billion in waste. 

Far too often, insurers simply pass those costs along to us in the form of higher premiums. 

So OSPIRG pushes back to make sure health insurance companies do more to cut waste before they raise premiums. By carefully scrutinizing rate hike proposals for things like administrative bloat, we’ve already helped cut over 150 million dollars from proposed rate increases in Oregon. [3] Now we want to make sure that insurers do even more to bring down costs: by focusing on keeping patients healthy instead of only paying for treatments once they get sick; actively negotiating for better deals from hospitals; and doing more to cut waste. [4] 

Unfortunately, some health insurance companies are spending millions to maintain their influence in Salem. But when we’ve brought public pressure to bear on unjustified rate increases, we’ve seen results, so join us!

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[1] Institute of Medicine of the National Academies, Feb. 2011, The Healthcare Imperative: Lowering Costs and Improving Outcomes: infographic and report

[2] CNN, March 2010, Prescription for waste: $1000 toothbrush. See also New York Times, Dec. 2013, As Hospital Prices Soar, a Stitch Tops $500.

[3] OSPIRG Foundation, July 2013, Accountability in Action.

[4] See here for an example of a clinic in Oregon that is doing this the right way.

Learn more about Oregon's health insurance rate review process and sign up to get notified about major rate proposals at the Oregon Insurance Division's consumer-friendly website, www.oregonhealthrates.org

Issue updates

Media Hit | Health Care

OSPIRG: 16 Health Insurance Companies Need To Justify Rates

An Oregon consumer group says the 16 companies that have proposed insurance rates for the state's new health exchange haven't offered adequate justification for prices.

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News Release | OSPIRG Foundation | Health Care

Proposed 2014 health insurance rates lack adequate justification

Sixteen Oregon health insurance companies have proposed their premium rates for next year, and according to new OSPIRG Foundation analysis released today, many have failed to adequately justify their prices.“With some insurers proposing rates twice as high as others for identical coverage, it is more critical than ever to scrutinize the basis for these rates,” said Jesse O’Brien, OSPIRG Foundation Health Care Advocate.

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Media Hit | Health Care

OSPIRG: 16 Health Insurance Companies Need To Justify Rates

An Oregon consumer group says the 16 companies that have proposed insurance rates for the state's new health exchange, haven't offered adequate justification for prices. 

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Report | OSPIRG Foundation | Health Care

Comment on Providence Health Plan's Proposed Individual Health Insurance Rates

Providence Health Plan has proposed premium rates for its individual and family plans for 2014. The insurer initially filed for significantly higher rates than Oregon’s other top insurance companies,   but then proposed lowering the rates. Doing so would bring the rates in line with those of competing insurers. OSPIRG Foundation's analysis of Providence's initial filing and the supplemental information provided raises some concerns about the insurer's proposal and its justification.

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Report | OSPIRG Foundation | Health Care

Comment on Kaiser Foundation Health Plan's Proposed Individual Health Insurance Rates

Kaiser Foundation Health Plan of the Northwest has proposed premium rates for its individual and family plans for 2014. Since its initial rate filing, the insurer has submitted a proposal to reduce those rates. OSPIRG Foundation's analysis of Kaiser’s initial filing and the supplemental information provided raises some concerns about the insurer's proposal and its justification.

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News Release | OSPIRG Foundation | Health Care

Health Insurance Rates to Rise 8-14% for Many Oregon Small Businesses

If approved, the insurer will raise rates 5.56% on average beginning in July, affecting 35,224 Oregonians enrolled in coverage through a small business employer.

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News Release | OSPIRG | Health Care

Health Exchange Clears Oregon Legislature

Consumers might see decent affordable coverage on the horizon, now that Oregon lawmakers have given the green light for the new Health Insurance Exchange.

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Media Hit | Health Care

State of the rates

As any small business or individual who pays for health insurance can tell you, it hasn't been easy. Far from it, what with 20 percent rate hikes and a terrible economy.

But thanks to new rules to crack down on excessive health insurance rate hikes – and the greater scrutiny that has followed – consumers have reason for cautious optimism.

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News Release | OSPIRG Foundation | Health Care

Public Comments Due on Regence Rate Hike

Oregonians impacted by Regence’s small business rate increase proposal have until the end of the day Tuesday, January 10th to submit public comments to the Oregon Insurance Division. 

 

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News Release | OSPIRG Foundation | Health Care

15%+ Regence Rate Hikes for Some Small Businesses

If Regence BlueCross BlueShield’s proposal is approved, small businesses will see rates rise 8.0% on average, with some jumping more than 15% in the next year, according to a new analysis by OSPIRG Foundation’s Health Insurance Rate Watch project.

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Report | OSPIRG Foundation | Health Care

Comments on Regence Proposal to Raise Small Businesses Rates

Regence Blue Cross Blue Shield (Regence) is proposing a rate increase on small business plans, with an average increase of 10.8%, impacting 54,299 Oregonians, effective July 1, 2011.

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Report | OSPIRG Foundation | Health Care

Building a Better Health Care Marketplace: Negotiating for a Better Deal

A well-made state exchange can help deliver lower costs for individuals and small businesses. Just as big businesses negotiate with insurers, using the bargaining power of their employees to push for lower premiums, so too can exchange enrollees benefit from a muscular exchange that negotiates on their behalf for better choices and lower costs.

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Report | OSPIRG Foundation | Health Care

Building a Better Health Care Marketplace: Ensuring Accountability

The creation of a new health insurance exchange offers states an opportunity to improve health care and lower costs by pooling consumers’ bargaining power, creating economies of scale, and pushing insurers toward delivering lower costs and higher quality.

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Report | OSPIRG Foundation | Health Care

Comments on Health Net's Rate Increase Proposal

Health Net Health Plan of Oregon is proposing an average 8.27% rate increase on small business plans impacting 37,872 Oregonians, effective April 1, 2011.

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Report | OSPIRG Foundation | Health Care

Comments on United HealthCare's Proposed Rate Hike

In this rate filing, United HealthCare does not appear to justify the proposed 16.8% increase.

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PRIORITY ACTION

Tell the Governor: Hold insurers accountable for cutting waste and prioritizing prevention. 

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