A Financial Blow for Rhode Islanders
Brace yourselves, Rhode Island. Health insurers are asking for the steepest rate increases in over a decade. The Office of the Health Insurance Commissioner (OHIC) recently revealed that insurers are requesting rate hikes of over 20% for 2026. For individual buyers, Blue Cross Blue Shield of Rhode Island (BCBSRI) is leading the pack with a jaw-dropping 28% increase request. Yes, you read that right—28%.
What does this mean for you? Higher premiums. More strain on your wallet. And for businesses? A heavier financial burden to provide employee coverage.
Why the Big Jump?
So, what’s driving these massive increases? A few key factors:
- Rising healthcare costs: Hospitals, providers, and prescription drugs are all getting pricier.
- Increased demand for services: More people are using healthcare, and new treatments like weight-loss drugs are adding to the bill.
- Federal tax credit expiration: The Enhanced Premium Tax Credits (EPTCs), which have helped lower premiums for many, are set to expire after 2025. This alone is adding nearly 10% to some rate requests.
It’s a perfect storm of financial pressures. And Rhode Islanders are caught in the middle.
What’s OHIC Doing About It?
OHIC isn’t just rubber-stamping these requests. Commissioner Cory King has promised a thorough review. “These costs represent a significant financial burden,” he said. “We’ll scrutinize every detail to determine if these increases are justified.”
The review process includes analyzing insurers’ data, pricing assumptions, and administrative costs. OHIC can approve, modify, or outright reject the requests. But here’s the kicker: the Rhode Island Attorney General’s Office won’t be conducting its usual independent review this year. That’s a big change—and one that’s raising eyebrows.
Who’s Affected?
Not everyone will feel the pinch. Self-funded employers, who cover about 65% of Rhode Islanders with employer-sponsored insurance, won’t be directly impacted. These employers pay healthcare costs out of pocket and only use insurers for administrative tasks.
But for individuals and small businesses? The impact could be significant. And let’s not forget the large group market, where requested increases range from 13.5% to 26.4%.
What Happens Next?
Public hearings are scheduled for late June and mid-July to discuss the individual market rates. OHIC’s final decision is expected by September. Until then, Rhode Islanders can submit comments and voice their concerns.
Feeling overwhelmed? You’re not alone. These rate hikes are a lot to digest. But one thing’s clear: Rhode Island’s healthcare system is at a crossroads. And the decisions made in the coming months will shape its future—for better or worse.