Thousands of Independence Blue Cross customers could be paying more for their health care if a request by the insurer to raise rates for three individual PPO plans is approved.

IBC said in a statement to IFAwebnews.com, that it is paying “significantly more” for the medical care provided in the PPO plans than what they collect, so there is the need “to cover our loss for these plans.” The insurer anticipates the proposed increases would impact 30,000 of its customers.

The Philadelphia-based insurer filed for rate increases to its nongroup Basic Blue Cross Hospital, Special Care Hospital and Personal Choice rates in its southeastern Pennsylvania service area May 15. IBC is asking for the new rates in the service area comprised of Bucks, Chester, Delaware, Montgomery, and Philadelphia counties to take effect July 1.

IBC said it understands that in today’s “tough economic times, more people are purchasing individual health insurance, and we are committed to offering a wide range of plans and keeping premiums as low as possible.”

“The real problem here is the escalating cost of medical care,” the insurer said. “That is why we strongly support health care reform to rein in health care costs, and increase the quality of care so that our health care system can provide affordable, high-quality coverage for all Americans.”

The filing with the Pennsylvania Insurance Department kicks off a 30-day public review period where consumers can submit comments, suggestions or objections to regulators, who then will rule on the request.

IBC said the recently filed rate increase requests are for its three individual PPO or Personal Choice plans, offered to anyone “regardless of their health” or “so-called guaranteed issue plans.”

“We are the only health insurer in this market that offers guaranteed issue plans,” IBC said.

In the case of its nongroup Special Care Hospital customers, geared toward low-income families, IBC is seeking a 27.8% increase, affecting 6,200 contracts and generating $2 million annually, according to a copy of the filing in the Pennsylvania Bulletin.

IBC is also proposing increases in its nongroup Basic Blue Cross Hospital rates, also offered to low income families, in the five-county service area. Those who are not eligible for health care tax credits would see a 24.5% increase and those who are eligible, a 43.2% increase if approved.

IBC estimates that 2,800 contracts would be affected and the change would generate $2.7 million annually.

IBC’s subsidiary, QCC Insurance Co., has also filed for increase in its nongroup Personal Choice subscribers, a plans for individuals and families.  The rate increases vary by benefit plan, from its prime and high options at increases of 28.9% and its standard option at 18.08%. The impact on customers will vary by individual or family and age of policyholders, according to IBC’s filing with the Pennsylvania Insurance Department.

For example, under the prime option, a family with two parents between the age of 30 and 39 with children covered under the plan would see its premium rise from $598.04 a month to $941,00, or 57.3%.  The lowest increase, of 10.1% would come for an individual age 60 or older on the standard option, from $606.51 per month to $668, according to the filing.

“We filed the rate increase requests for our three individual PPO plans because for every $1 our customers have paid us in premiums, we have paid significantly more for their medical care,” IBC said. “Simply put, our requested rate increases are intended to cover our loss for these plans. We included complete detail in our filing about premium income and medical costs for those plans.”

IBC said it will be posting public announcements in local print media about the rate filing request, in addition to the information already published in the Pennsylvania Bulletin.