Even if rates go up 25 percent in Wisconsin next year, 69 percent of people using the exchange could find a plan for $75 a month or less, according to a new report by the federal health department.
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Insurers that offer Affordable Care Act-compliant policies in the state have requested average rate increases between 17 percent and 35 percent for next year.
Local news organizations report that rates are expected to increase next year by an average of 62 percent for BlueShield of Tennessee, 46 percent for Cigna and 44.3 percent for Humana.
Consumers eligible for federal subsidies under the Affordable Care Act will pay less than the full increase because their subsidies also will increase, said Katie Martin, acting assistant secretary for planning and evaluation at the U.S. Department of Health and Human Service. That compares to rate increases of between 5 percent and 37 percent in 2016.
The Louisiana Department of Insurance does not have the authority to approve health rates but can review them to determine if increases are justified.
An Anthem spokesman said in May that the higher rates are meant to cover anticipated claims costs driven by the increased use of medical services and higher drug costs.
The reason for potential increased participation is the advance tax credits included in the Affordable Care Act to subsidize health insurance for the majority of consumers who have plans through Healthcare.gov.
The federal officials stressed that the tax credits, which many consumers are eligible for, are created to protect against rate increases.
Aetna claimed that it’s absorbed $430 billion in pre-tax losses from the exchanges since January 2014, pushing the company to reduce its exchange participation to 242 United States counties from 778. People who buy plans on the exchange are heavier users of services than anticipated.
Next year’s rates are not final, though, until HHS reviews them.
“Before Obamacare, healthcare premiums were increasing at a much more rapid pace than they are now”, Potter said.
“I think what we should be expecting is premiums that are substantially higher, and I think there’s a real risk that other insurers pull out”, said Michael Morrisey, a professor at the Texas A&M University School of Public Health. Major insurers have left the IL exchange and Land of Lincoln Health is folding.
UnitedHealthcare, which this year offered plans in all 159 counties, announced in April it was pulling out of the marketplace.
Next year, the three companies offering coverage in Tennessee will be Blue Cross Blue Shield, Cigna, and Humana.
The company plans to remain in markets in Los Angeles, New York City and San Antonio in 2017. Carriers still have about one month to consider where they’ll provide coverage, and some with potential plans to expend are waiting until they get regulatory approval before they’ll publicly announce their intentions.
Analysts say the exchanges’ problems run deep and Congress may need to step in to stabilize the marketplace over the next couple of years.
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An estimated 80 percent of those who opt to purchase health coverage on HealthCare.gov during open enrollment should be able to purchase a plan for less than $75 per month.
