Tags: State Officials | Obamacare | Hike | Premiums

State Officials: We May Have to Increase Obamacare Premiums

Image: State Officials: We May Have to Increase Obamacare Premiums

(AP Images)

By    |   Friday, 26 Aug 2016 12:45 PM

State insurance officials say they are feeling pressured to approve large increases to premiums for Affordable Care Act  plans, in order to stop more insurers from leaving the market.

"I didn't feel like I had any choice but to approve those rates when it came back to be actuarially justified," Tennessee's insurance commissioner Julie Mix McPeak told The Hill.

McPeak approved premium increased of 62 percent, 46 percent, and 44 percent for the three insurers in Tennessee's marketplace.

Maryland's insurance commissioner Al Redmer also expects a price increase, telling The Hill, "There are going to be significant increases in the individual market."

The Hill reported that an early estimate by analyst Charles Gaba said that the average premium increase would be 27.6 percent.

Most Obamacare consumers will not pay for the increases, according to a Department of Health and Human Services analysis. If all premiums increased by 25 percent next year, 73 percent of consumers would still be able to find a plan for less than $75 a month, thanks to subsidies.

The Hill pointed out that 15 percent of Obamacare enrollees do not get subsidies and would have to face the full increase.

Some insurers said they could exit the Obamacare marketplace in some areas of a state if not the whole state, because of financial losses. UnitedHealthcare and Aetna have already said they are withdrawing from many Obamacare marketplaces.

McPeak said a crisis point has not yet been reached, but she remains concerned. "We're certainly not at a place of collapse right now, but I am very worried that, like I mentioned, any one carrier deciding to withdraw from our marketplace could have a disastrous effect, because the other insurers may follow suit."

McPeak added that she believes Obamacare is not a success because of the resulting lack of options.

"Half of our counties have only one option on the exchange today and so having any change in the level of competition may not allow our exchange to survive," McPeak told The Hill.

North Carolina insurance commissioner Wayne Goodwin said parts of his state might have no Obamacare options, but he is waiting to see if the premium increase gets approved.

Health and Human Services spokeswoman Marjorie Connolly said the department is "confident" that Tennessee and North Carolina will both have affordable coverage options.

The National Interest reported that 19 states will see increases in health insurance rates in 2017, according to state insurance regulator data.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
Newsfront
State insurance officials say they are feeling pressured to approve large increases to premiums for Affordable Care Act plans, in order to stop more insurers from leaving the market.
State Officials, Obamacare, Hike, Premiums
408
2016-45-26
Friday, 26 Aug 2016 12:45 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved