The New Mexico Supreme Court ruled July 28 that state hearings into Blue Cross Blue Shield of New Mexico’s previously approved 21% rate hike request can continue.

The carrier wanted to reverse acting Insurance Superintendent Johnny Montoya’s suspension of the rate hike, approved earlier this year by the former superintendent, according to the New Mexico Independent Network. The insurer said the regulator’s actions were “unlawful and unconstitutional” in court filings.

Blue Cross’ lawyer, Paul Bardacke, according to the report, argued that insurers should face repeated hearings after a premium increase has been approved by regulators.

“Where is the finality for consumers, first of all?” he asked the judges, according to the report.

Lawyers for the state argued that state law mandates that appeals of rate hike withdrawals should go to district court.

Earlier this month, Montoya suspended his predecessor’s April 26 approval of the rate hike, saying he will hold a public hearing Aug. 25 to review evidence for the increase and to ensure transparency in the rate review process.

“Because this increase coincides with very challenging financial times for nearly every New Mexican, it’s prudent for the Insurance Division and the citizens of this state to know exactly why such rates are warranted,” Montoya said, according to the Independent newspaper. “My office is tasked with ensuring that the corporate solvency and consumer interests are balanced and I firmly believe that suspending the settlement and going ahead with the evidentiary hearing is in everyone’s best interest.”

The increases proposed by the Blues were “unjustified” and its losses were “inflated,” according to an expert hired by the state attorney general’s office. Just a day before a public hearing on the proposed rate increases, officials from the attorney general’s office, the Blues and the New Mexico Insurance Division reached a deal, paving the way for a 21.3% rate hike. Based on the deal, former Insurance Superintendent Morris “Mo” Chavez signed off on the increase, which was then reversed by Montoya in June.

Blue Cross officials say they will be at the hearing Aug. 25.