Citing increased costs in health care, Blue Cross of Northeastern Pennsylvania is seeking regulatory approval for $13.4 million in premium increases, affecting 56,000 of its members.

The Wilkes-Barre, Pa.-based insurer’s request is under review by the Pennsylvania Insurance Department and if approved, would take effect Jan. 1, 2010, according to filings submitted to the department and published in the Pennsylvania Bulletin.

Anthony Matrisciano, a spokesman for the insurer, told IFAwebnews.com that the request “reflects the rising cost of health care, as what we are paying out in claims keeps rising.”

“Even with subsidies, we need to raise the rates and keep up with costs,” he said.

Matrisciano said the rate increases, if approved, would affect 56,000 of the insurer’s 588,000 members in 13 regional Pennsylvania counties, or just below 10%. The company operates in the northeastern region of the state.

He added that Blue Cross of Northeastern Pennsylvania has used $86 million of its surplus in the last five years to subsidize coverage.

The rate increase request applies to four products, including the BlueCare Security Medigap Package C, which will experience a 20% increase, if approved.  The rate is being subsidized with $500,000 in company surplus and would generate $5.5 million among its 26,230 subscribers, according to the company’s filing.

Comprehensive BlueCare cooperative plans, covering 3,573 customers for individuals and families, would increase 49% without any benefit changes and generate $7 million annually.

Matrisciano said that the insurer will meet its obligation for a public notice on the requests and has already contacted its customers by providing information on products that have “equal or better coverage” to meet their needs if they wish to change.

As in any rate request, the state insurance department will accept input on the proposed increases for 45 days prior to making a determination.