Cost of Obamacare Plans Skyrocketing

1. According to an HHS release yesterday, insurers are filing large increases on Obamacare plans all across the country.

2. In 41 states plus D.C., insurers requested double digit increases on 676 individual and small group plans.

3. In most states, insurers with large market share have proposed rate increases in excess of 20 percent for next year.

By May 15, insurers had to file 2016 premiums with their state regulatory agencies and provide an explanation for rate increases exceeding 10 percent. Yesterday, the Department of Health and Human Services released this information for the 37 states using HealthCare.gov, along with some rate increases in other states. Based on these filings, premiums for many Obamacare plans across the country will rise substantially next year. In 41 states plus the District of Columbia, insurers requested double digit increases on 676 individual and small group plans. These are on top of huge individual market premium increases averaging 49 percent between 2013 and 2014.

Obamacare plans have disproportionately attracted older and sicker people, and insurer explanations indicate that claims tend to be far above what companies expected. Moreover, Obamacare contained a large subsidy for insurers through the law’s reinsurance program – equaling $20 billion over three years. The reinsurance program is rapidly phasing out. The combination of these factors means premiums may continue to spiral upward as healthier people choose not to buy the expensive coverage. The following is a sampling of early rate filings for Obamacare-compliant plans sold in the individual market.

Alabama

Blue Cross and Blue Shield of Alabama has filed an average premium increase of 28 percent for next year. The insurer projects that this increase will affect more than 175,000 members.

Alaska

Premera Blue Cross Blue Shield, with nearly 8,500 members, has filed a 39 percent average premium increase for 2016.

Arizona

BCBS of Arizona, with more than 75,000 policyholders, has filed a 21 percent average premium increase in 2016.

Idaho

BC of Idaho has filed an average premium increases of 24 percent for next year. The insurer expects this increase to affect around 53,000 members. 

Illinois

BCBS of Illinois has proposed an average increase of 38 percent for its PPO plans and its HMO plan by 29 percent, increases that will affect about 330,000 people. In addition, Coventry has requested an average 34 percent increase for a group of PPO plans.

Kansas

BCBS of Kansas, with nearly 29,000 members enrolled as of March 31, is seeking an average premium increase of 38 percent for next year. Coventry Health Care, with 68,000 members, is seeking to raise average premiums by 28 percent for next year.

Montana

BCBS of Montana, with nearly 45,000 members as of March 31, has filed an average rate increase of 23 percent for next year. Montana Health Cooperative, with more than 17,000 enrollees, has filed an average rate increase of 34 percent.    

New Mexico

Health Care Services Corp, the state’s largest insurer in the individual market, has filed a 52 percent premium increase for 2016.

North Carolina

BCBS of North Carolina, with nearly 400,000 members, has filed an average rate increase of 26 percent. Aetna, with nearly 120,000 members, has filed an average rate increase exceeding 20 percent.

Oklahoma

BCBS of Oklahoma, the largest insurer in the state, has filed rate increases ranging from 23 to 44 percent. As of March 2015, there were nearly 138,000 members with these plans.

Utah

Arches Mutual Insurance Company has filed a 58 percent average rate increase for its POS plan and a 47 average rate percent premium increase for its HMO plan. Aetna filed an 18 percent increase for its 11,000 members