Health insurance rates for ACA plans to rise almost 9 percent in Pa.

Government marketplace health insurance premiums in Pennsylvania will rise an average 8.8 percent for individuals and 6.6 percent for small group plans in 2018 under rate proposals filed with the state Insurance Department.

The single-digit average increases were attributed to the relatively stable health insurance market in Pennsylvania, where five insurers offer the coverage, Insurance Commissioner Teresa Miller said.

The aggregate rate increases are also a fraction of the 32.5 percent average rate hike that insurers were granted last year by the department.

But changes to the Affordable Care Act, also called Obamacare, which are being considered by the federal government, would drive rates much higher — up 23.3 percent if the requirement that everyone have coverage is repealed and 20.3 percent if government subsidies are revoked, according to the state.

And if both requirements are dropped, insurers have indicated to the state insurance department that they will seek an increase of 36.3 percent.

“This proves what we already know — instability caused by adverse action from the federal government will do nothing but hurt consumers who are stuck in the middle,” Ms. Miller said in a prepared statement.

The proposed rates do not affect deductibles or out-of-pocket maximum payments for medical expenses, which were $3,572 for individuals and $7,474 for families in 2017.

Insurers have until the fall to revise their rate proposals for plans offered in Pennsylvania.

The American Health Care Act, which would repeal most of Obamacare, would drop the individual health insurance mandate and substitute cost reduction subsidies with tax credits of $2,000 or $4,000, depending on the person’s age. The bill was approved by the U.S. House in May and is under consideration in the U.S. Senate.

About 506,000 Pennsylvanians have ACA coverage, 76 percent of whom receive premium assistance depending on income.

Fifty-five percent of Pennsylvanians receive employer-based health insurance, 18 percent from Medicaid, according to 2015 numbers compiled by Kaiser Family Foundation.

UPMC Health Plan’s move into central Pennsylvania in partnership with Reading Health System will likely benefit consumers by driving down costs and therefore rate proposals, Ms. Miller said.

Separately, Reading announced plans on Wednesday to buy five hospitals from for-profit Community Health Systems. Also, Pittsburgh hospital system UPMC in March said it would affiliate with Harrisburg-based Pinnacle Health, a four-hospital plan, which could also put downward pressure on health insurance rates in the region.

Specific premium rate increases sought by individual carriers vary by region of the state and will be released July 21.