NM Supreme Court Denies BCBS Request to Stop Hearing on Premium Rate Increase

Chalk up another one for folks insured under individual policies with Blue Cross and Blue Shield of New Mexico’s (BCBSNM) -- at least for now. An evidentiary hearing on BCBSNM's double-digit insurance premium rate increase will proceed as planned after the New Mexico Supreme Court denied the company’s petition for a Writ of Mandamus on Wednesday. A statement released yesterday by the New Mexico Public Regulation Commission (PRC) explains what happened and what comes next.

The petition -- filed last month by BCBSNM -- requested that the Supreme Court prohibit the Superintendent of Insurance from proceeding with the planned evidentiary hearing regarding BCBSNM’s requested 21.3% insurance premium rate increase. The hearing was scheduled last month when interim Superintendent of Insurance Johnny L. Montoya issued an order suspending the April 26 settlement agreement brokered among the Division of Insurance staff, BCBSNM, the Attorney General’s Office and aggrieved party, Jody Neal-Post.

That agreement established a 21.3% rate increase for an estimated 40,000 BCBSNM individual plan customers. Montoya, however, opted to suspend the settlement agreement in order to ensure that the rates are justified and to bring much-needed transparency to the 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 after issuing his June 22 order suspending the settlement.

BCBSNM’s petition to the Supreme Court was filed shortly after Montoya decided to suspend the agreement.

Responding to the company’s request for the Writ, the Superintendent’s office and the New Mexico Attorney General’s office argued that the issuance of the Writ was inappropriate. On Wednesday, the court agreed and denied the petition. The Insurance Division was represented by Insurance Division Chief Legal Counsel David Barton while the AG’s office was represented by AG Gary King.

As a result of Wednesday’s decision, the evidentiary hearing is scheduled to proceed as planned. That hearing is set to commence at 9 AM on Wednesday, Aug. 25, in Apodaca Hall on the second floor of the PERA Building, 1120 Paseo de Peralta.

At the hearing, NMPRC staff will present an overview of how it reached its decision to approve the original rate increase request and BCBSNM representatives are expected to produce evidence and testimony to justify the 21.3% increases. The public is encouraged to attend the evidentiary hearing; written and oral public comment will be taken during the hearing.