Rhode Island Faces Healthcare Affordability Crisis as Premiums Set to Surge
PROVIDENCE, R.I. – A political and economic clash is brewing in Rhode Island over proposed healthcare premium increases slated for 2026, with the Attorney General’s Office sharply criticizing the state’s rate approval process and Governor dan mckee’s proposed solutions.The Office of the Health Insurance commissioner (OHIC) announced this week that premiums are set to rise dramatically – averaging 21% in the individual market, 17.6% for small groups, and 19.3% for large employers.
OHIC attributes the increases to rising healthcare costs, pharmaceutical prices, newly approved fees from the General Assembly, and the expiration of Enhanced Premium Tax Credits. However, Attorney General peter Neronha argues that the current rate review process is fundamentally flawed, prioritizing insurance company solvency over the financial well-being of rhode Island residents.
“It’s not just about numbers,” Neronha stated, ”it’s about looking at these proposed increases in the context of economic impact on rhode Islanders.” He warned that the approved rate hikes could push healthcare costs to consume a staggering 30% of household income – a burden he deems unsustainable. Neronha is calling for the complete overhaul of the current rate review system, deeming it “illegitimate” and narrowly focused.
The Attorney General’s critique extends to Governor McKee’s suggestion that OHIC simply needs more authority. Neronha expressed a “knowledge gap” on the Governor’s part, accusing his administration of inaction. “He hasn’t charged his department…to go back and fix the system that is clearly failing Rhode Island,” Neronha asserted.
Instead,Neronha is championing a public payer option as a potential solution,envisioning a government-backed insurance plan that would introduce competition and drive down prices. He revealed his office is collaborating with the Brown School of Public Health to