Like other health insurance companies nationwide, Blue Cross Blue Shield of Michigan is citing increasing medical costs as the primary driver for its need to raise rates on some of its plans.

The Detroit-based company said it has asked Michigan regulators for rate increases for health plans covering subscribers under age 65, “but increases that are far lower than the company actually needs to break even on these products,” according to a statement.

BCBSM seeks a 7.8% increase for its individual “PLUS” group conversion products and a 9.9% increase for its individual “PLUS” products, both of which were introduced last year. Other individual products and group conversion would receive 15% and 12% increases, respectively.

The proposed increase would affect 189,000 individuals under age 65 purchasing their own health care coverage, the company said. That group represents just over 4% of its total membership. The request does not affect employer-based plans or Medicare supplemental plans purchased by senior citizens.

If approved by regulators, the new rates would go into effect in October 2010.

Andrew Hetzel, BCBSM vice president for corporate communications, said in a statement that the insurer needs “to keep pace with medical costs,” but also noted the economic climate of the state and the nation.

“In this extraordinary economic time, we also understand the pressures that very large premium increases put on the ability of people to maintain their coverage,” said Hetzel. “We are trying to strike a delicate balance between doing the right thing for our business and our subscribers.”

The company said even with the premium increases, it plans to lose between $40 million and $60 million in the under age 65 individual market next year. In 2009, BCBSM said it lost $94 million in that market, despite increases that went into effect that year for some of its product.

The insurer also noted its medical loss ratio – the percentage of premium revenue related directly to medical costs – was 105% in 2009 for that market and is “well beyond” the thresholds of 80-85% required by federal health reform law.

“Blue Cross is spending significantly more on our individual plans than we are collecting in premiums,” Hetzel said. “This will continue to be the case, even if we are granted the full increases we are requesting.”

BCBSM is also asking regulators to consider requiring all health insurers to publish their rate increases for the individual market so all Michigan residents and policymakers can see them. BCBSM is the only Michigan health plan currently required to inform consumers of its rate requests, according to the company.