Blue Cross rates to climb by up to 27 percent in Nevada

The company, which is owned by Colorado-based Rocky Mountain Life and Health, said increases of 23 percent to 27 percent were necessary to keep the company financially sound.

"We realize it is a big jump. But in most of these products there hadn't been increases since early 1997," said Blue Cross Blue Shield spokesman Neil Westergaard.

The hefty increases were approved by the Nevada Insurance Division, which agreed they were justified.

"If we didn't approve that 27 percent increase, eventually Blue Cross Blue Shield of Nevada would be in financial jeopardy," said Guy Perkins, a supervisor for the agency's life and health section.

Westergaard attributed the rate increase to a surge in claims. People submit more claims to insurance companies for treatments, surgeries and other procedures when the economy is good, he said.

Perkins agreed: "Some is due to plain old medical inflation, but most is due to their claims expenses just went out of sight."

Blue Cross Blue Shield customers were not happy to get letters this month notifying them about the rate increases.

"No matter what income bracket you're in, unless you're Bill Gates, you're going to have to cut back somewhere," said Robert Bonesteel, 61, of Incline Village.

Beginning April 1, the self-employed technical consultant will face $578 monthly premiums, up 23 percent, for himself and his wife.

Edwin Hallford of Silver Springs had planned to add his wife to his policy, but his 27 percent increase made it impossible.

"They just priced her right out of the market," he said.

The increases sound harsh, but insurance companies have to charge enough to stay in business, Perkins said.

"Bottom line, it's better than not having any coverage at all," he said.

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