Penn­syl­va­nia in­sur­ers buck trend for gi­ant rate hikes with sin­gle-digit bump re­quest

Modern Healthcare - - REGIONAL NEWS - —Shelby Liv­ingston

In­sur­ers in Penn­syl­va­nia are re­quest­ing an av­er­age rate in­crease of 8.8% for in­di­vid­ual plans and 6.6% for small group plans in 2018, buck­ing a na­tional trend of dou­ble-digit in­creases on av­er­age. In­sur­ers in Connecticut and Vir­ginia have asked for rate in­creases ex­ceed­ing 50% in some cases.

Penn­syl­va­nia’s rel­a­tively small rate in­crease re­quests could jump if the Trump ad­min­is­tra­tion re­peals the in­di­vid­ual in­surance man­date or fails to fund cost-shar­ing re­duc­tion sub­si­dies, state In­surance Com­mis­sioner Teresa Miller said last week. That’s the same warn­ing that sev­eral other state in­surance reg­u­la­tors and mar­ket­place in­sur­ers have is­sued for months.

The five in­sur­ers that sold plans in Penn­syl­va­nia’s in­di­vid­ual mar­ket this year are all slated to re­turn next year. To­gether, Cap­i­tal Blue Cross, Geisinger Health Plan, High­mark Health Plan, In­de­pen­dence Blue Cross and UPMC Health Plan in­sure about 506,000 peo­ple in the state’s in­di­vid­ual mar­ket. The rate re­quests are not fi­nal.

Penn­syl­va­nia in­surance reg­u­la­tors said the in­sur­ers would seek a 23.3% av­er­age rate in­crease statewide if the in­di­vid­ual man­date is re­pealed, and a 20.3% rate in­crease if cost-shar­ing re­duc­tions are not paid to in­sur­ers. With­out the man­date or cost-shar­ing sub­si­dies, in­sur­ers es­ti­mated they would ask for rate in­creases of 36.3% on av­er­age.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.