Health insurance providers under the Affordable Care Act are looking to boost premiums by double-digits in 2016, according to information released Monday, June 1, by the White House.
Providers say the proposed premium hikes are a result of the cost of customers they gained under expanded coverage through ObamaCare, which exceeded what they expected, as well as the rising cost of prescription drugs.
Among insurers requesting increases include United Healthcare, which would like to raise premiums sold through ObamaCare by an average of 18 percent; in Texas, Scott and White is eyeing a 32 percent hike; in Illinois, Blue Cross and Blue Shield is asking for an average 23.4-percent increase for individual plans; and in North Carolina, Blue Cross and Blue Shield is seeking an increase of about 26 percent.
Insurance experts say these filings don’t provide for any solid conclusions about pricing for next year’s marketplaces, and it is likely that the requested hikes will change when providers negotiate with the Obama administration and insurance commissioners in states where they do business.
“It’s hard to generalize, but that said, I think all signs are pointing to bigger premium increases than in 2015,” said Larry Levitt of the nonpartisan Kaiser Family Foundation, according to the Associated Press.
Despite the proposed hikes, consumers may still obtain lower premiums by selecting a different plan or agreeing to pay higher deductibles.
“The rate review process kicks off an important set of steps designed to provide consumers and others the opportunity to weigh in on proposed rate increases of 10 percent or more,” said Andy Slavitt, acting administrator of the Centers for Medicare and Medicaid Services. “These specific rates will be subject to vigorous rate review and revision and the final rates consumers will see this fall will reflect the breadth of choice and competition in the marketplace.”
Caroline Pearson, a senior vice president with consulting firm Avalere Health, also warned that the new data should not be reason for concern since the figures are only preliminary.
“It’s easy to panic when you see really high rate increases,” she said, according to Politico. “The market’s not blowing up. These are not warning signs of catastrophe.”
Even if higher premiums are implemented next year, plans won’t necessarily become more expensive for consumers, as more than 80 percent of Obamacare eligible-enrollees qualified for subsidies this year.
The preliminary requests were announced as the Supreme Court prepares to make a decision on whether or not the use of tax credits to offset the cost of premiums through ObamaCare for lower-income consumers in most states throughout the country is constitutional.
Consumers are expected to begin learning about how rates may change for their specific plan by early October, while final rates for 2016 will be released by Nov. 1.
(With reports from The Associated Press, CNN, FOX, Forbes and Politico)
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