I don't know about their raising rates - probably. But I do know there have always been not full dollar prices because I have several of those on my AD orders even (2.89 and 2.99) as well as one for 10.79 for a larger, more expensive item.
So far in 2016, I've spent far less on S&H than I would have on the old policy - and far less even than if I'd paid for a Prime membership. It all depends upon knowing what you like to buy and where you like to do it. For what I want, sometimes QVC will be my source, but as it's always been, I will shop multiple places.