Health Premium Rates Up Jan 1

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. TRENTON - State Insurance Commissioner Joseph F. Mgrphy has announced his approval of a 24.2 per cent average increase in the premium rates of small group and individual (direct pay) subscribers of Blue Shield. At the same time, he approved an 18.1 per cent increase for direct pay Medicare complementary subscribers of Blue Cross,

effective Jan. l. 1983.

The Department of the Pubhc Advocate, which serves as rate counsel in the public interest in rating matters, concurred in the decision to qpprovo the rate increases. ' Miirpfiy said. » BUIE SH|£m>. whoso foomal name in the Medical-Surgical Plan ol New Jersey, provides medical benefits to its subscribers, while Blue Cross, theHospital Service

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Plan of New Jersey, pay§) the cost of hospitaliration Blue Shield has 1 6 million small group (fewer than 50* and individual subscribers. The Blue Cross direct pay Medicare complementary subscribers total about 268.000, MURPHY SAID that Blue Shield, which faces a $13.5 million deficit by year's end. is insolvent and rate relief is essential if the Plan's financial health is to be restored as mandated by statute. The increase will produce an additional $26.8 million in premium in

1983.

"Blue Shield's financial position will continue to deteriorate if it does not get a rate increase at this time," Murphy added. The direct pay Medicare complementary subscribers of Blue Cross were not included in the rate revisions approvedior the Plan last June. The increase will pro duce an additional $6.8 million in premium in 198:) Murphy disclosed that be would call public hearings iiv January in conjunction with the Public Advocate to explore all aspects of Blue Shield’s operations and its relationship with. Blue Cross, which is a separate corporate entity.

COURT HOUSE The following area birth* have been reported by Burdette Tomlin Memorial Hospital: SON to Julian A Denise Armand Edgar of N Cape Mav, Nov. 21. nAUGHTKR to Richard A KAthryn NichMson Shepanski of Cape May. Nov 12 SON to Michael A Jamie Kochowicz Gallo of N Wildwood,

bAUGHTRn to f illoway Laurel of

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