WARWICK — A dozen people attending a public hearing on Tuesday railed against Blue Cross & Blue Shield of Rhode Island’s request to hike insurance plans for individuals by an average 10.2 percent, pointing out that the nonprofit company just moved into “plush” new headquarters in downtown Providence.

Nor were they pleased when it was announced that Attorney General Patrick C. Lynch supported a rate hike only slightly lower — 9.5 percent — based on an actuarial study completed independently for his office by a consultant.

With people making less money and losing jobs, soaring health-insurance costs are intolerable, they said.

“I would characterize Blue Cross’ request as absurd,” said George M. Goodwin during the hearing held by the state health insurance commissioner’s office. Addressing Blue Cross representatives, he asked, “Do you have no heart? No conscience? No sense of decency?”

At issue are so-called “direct pay” plans, which serve those who purchase insurance directly from Blue Cross since they don’t have access to coverage offered by employers and aren’t eligible for government programs. Blue Cross, with 14,000 direct pay subscribers, is the only company that offers these plans in Rhode Island.

In 2009, Blue Cross’ request for a 5.9-percent rate hike was denied by Health Insurance Commissioner Christopher F. Koller. Now, said Blue Cross executive Norman Benoit, a 10.2-percent increase won’t even help the plans break even. Nor will it contribute anything to the company’s reserves, which Benoit said are essential to safeguard against a natural disaster or other crisis. The rates would go into effect April 1.

“We recognize that at these difficult financial times any rate increase appears unwarranted,” Benoit said. “We do not take the need to increase rates lightly.”

His testimony Tuesday morning did little to placate the audience at the Warwick headquarters of the state Public Utilities Commission, and the recommendation announced by Assistant Attorney General Genevieve Martin only seemed to enrage them.

“What a joke!” someone called out from the audience.

Hearing officer John A. Cogan, who will ultimately make a recommendation to Koller, urged the crowd to remain civil. They complied.

Geraldine Litz, 59, of Warwick, testified that she has been unemployed for 18 months and had to enroll in a direct pay plan.

“I had no choice but to buy from Blue Cross,” she said, noting that the premium hike will force her to turn over nearly 40 percent of her income to Blue Cross.

Cheryl Teverow, a sales representative until her company relocated out of state, said the increase is “really cruel in this day and age.”

Reacting to Benoit’s statement that its new headquarters has not been financed by direct pay premiums or company reserves, Teverow said, “It’s baloney … It shouldn’t have been such a plush building … It’s the salt in the wounds.”

As for Lynch’s recommendation, she said, “I’m really surprised” it’s less than a 1-percent difference. “That doesn’t cut it.”

Koller said yesterday that he could not discuss the specifics of the rate-hike request prior to the conclusion of the hearing, which continued with a second public hearing session later Tuesday night and resumes on Jan. 26 with evidence to be presented by representatives for Blue Cross and the attorney general.

But when asked to comment on the significance of Lynch’s recommendation, he said, “it’s very important because it’s part of the proceeding.” Neither he nor Cogan may base their decisions on anything other than testimony provided during the quasi-judicial process and the attorney general is designated in state law as a formal party to the hearing.

rsalit@projo.com