Most health insurers who took large financial hits on the federal exchanges are looking to increase their premium rates for next year, observed The Wall Street Journal.
Particularly large plans in states like New York, Pennsylvania and Georgia are planning to hike rates by over 20%. In other states, like Florida and Maryland, the average premium increase was above 10%. Among the states that have disclosed their rate filing information, only Vermont so far had posted requested insurance rate increases below 10%.
The requests still need to be approved by state regulators before they are implemented for next year. With other states yet to unveil their premium rate proposals, a full picture of the nation’s seemingly mounting premium rates cannot be determined. Regardless, the proposals need to be submitted and approved before November 1, when the Affordable Care Act-affiliated federal exchanges reopen for individual health plan enrollment.
The report on The Wall Street Journal suggests that through the increases, the country’s insurers are adapting to the industry changes made by the ACA.
The ACA is popularly known for making health coverage more accessible to all, regardless of medical history, with consistent pricing and limited variation based on age. On the other hand, it has increased the price of insurance for healthy consumers, discouraging them from purchasing coverage and offsetting the costs of sicker enrollees.
Analysts and a number of insurers had cautioned of costs higher than expected should the health law underestimate how sick the population is. Many also anticipated that rates would increase as a result.
Some carriers are expecting 2017 to be a difficult period, with federal programs created to act as subsidies for insurer losses expire, such as the risk corridors.
Despite the impending increases, federal officials reassured that consumers who purchase coverage through online exchanges will not feel the full brunt of the premium changes, thanks to a federal subsidy that could potentially lower costs.
“Americans will continue to have affordable coverage options in 2017,” remarked HealthCare.gov CEO Kevin Counihan. Proposed rates aren’t what most consumers actually pay. The vast majority of consumers qualify for tax credits that reduce the cost of coverage below the sticker price, and people can shop around and find coverage that fits their needs and budget.”
