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PA Bulletin, Doc. No. 01-698



Blue Cross of Northeastern Pennsylvania and Pennsylvania Blue Shield; Rate Filing

[31 Pa.B. 2239]

   On April 2, 2001, Blue Cross of Northeastern Pennsylvania and Pennsylvania Blue Shield submitted a filing requesting the Insurance Department's (Department) approval to increase the current monthly rates for the Community Group Major Medical Product. The proposed rates have been adjusted for the recently approved mandatory benefit changes, as well as the option to remove the prescription drug benefit. The proposed percent rate changes of Department approved rates for October 1, 2000, are 20.77% for the Major Medical Benefit Program that includes the pharmacy benefit. For the Major Medical Program that excludes the pharmacy benefit, the rates are reduced by approximately 5% from the approved January 1, 2001, rates.

   In addition, the plans are requesting approval to implement two-tier, three-tier, four-tier and five-tier Major Medical Community rates based on the rate ratios of the Access Care II community product. These additional tier structures will allow for consistency in rate relativities among the traditional and PPO products.

   Based upon the projected number of contract-months for the period of October 1, 2001--October 1, 2002 (259,713), the estimated additional revenue that this rate change would yield is $6,368,161 if all groups were to renew on October 1, 2001. This additional revenue represents a rate change off of Department approved rates for October 1, 2000, and reflects the mandatory benefit changes with the pharmacy benefit included.

   An effective date of October 1, 2001, is requested.

   Copies of the filing are available for public inspection during normal working hours, by appointment, at the Department's Harrisburg regional office.

   Interested parties are invited to submit written comments, suggestions or objections to Rashmi Mathur, Actuary, Bureau of Accident and Health Insurance, Insurance Department, 1311 Strawberry Square, Harrisburg, PA 17120, within 30 days after publication of this notice in the Pennsylvania Bulletin.

Insurance Commissioner

[Pa.B. Doc. No. 01-698. Filed for public inspection April 20, 2001, 9:00 a.m.]

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