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If Horizon BCBSNJ is able to distribute $55 million, why are premium rates still rising?

April 26, 2017able bcbsnj horizon Premium rates Rising

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If Horizon BCBSNJ is able to distribute $55 million, why are premium rates still rising?

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We base premium rates on prior claims experience and our best prediction of further health care costs. If claims are lower than our projections, the company is left with unused premium dollars. However, health care costs are expected to rise again in 2004, as they have nearly every year in the past decade. Based on the latest information, Horizon BCBSNJ is expecting a slightly slower increase than experienced in 2003.