Associated Press

North Dakota's insurance commissioner says he rejected a 14.8 percent rate increase request from Blue Cross Blue Shield of North Dakota for individual policies because the Blues misled his department and failed to provide enough information.

"Blue Cross Blue Shield did not substantiate this rate increase request, misled the Insurance Department concerning payments to health care providers, and stonewalled the department when it sought information. As a result, I denied this request," Commissioner Adam Hamm said in a statement Friday.

Blues spokeswoman Denise Kolpack said the insurer did not mislead the Insurance Department and provided complete information. She said Blue Cross Blue Shield was notified of Hamm's decision shortly before he issued his statement.

"We are surprised and disappointed by the announcement from the insurance commissioner this morning," Kolpack said. "Once we receive specific written rationale about the disapproval, we will determine our next steps."

Hamm said about 30,000 North Dakotans are covered through individual Blues policies. He said the 14.8 percent raise would have cost policyholders a total of about $11 million over the next year.

Last year, the Blues sought a 10 percent increase for the individual group. Then-Insurance Commissioner Jim Poolman granted 9.4 percent. The previous year, Hamm said, the insurer sought a 4.2 percent increase and was allowed 2.9 percent.