Health plans sold on Michigan’s insurance exchange could see an average 17.3% increase next year, and if recent history is any guide, state regulators could approve the insurance companies’ rate hike requests without many – if any – changes.
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Health insurance companies made their pitch this week to state regulators for rate increases next year, and the prospects provide bad news for consumers.
The for-profit health-care industry adds at least 20 percent to our insurance premiums for administration and profit, so we pay far more than necessary for a frustrating, crazy- quilt system that leaves many inadequately covered and some not at all.
“However, that must be done in a sustainable way”, the statement said. “Premium rates must cover the anticipated health care needs of our members, and consumer protections exist in the way of rebates if a certain percent of premiums do not go directly to covering medical services and quality programs”.
The Illinois Department of Insurance has until August 23 to review the proposed rates, but, unlike several other states, it doesn’t have the power to reject the proposed rates outright.
Ultimately it will be insurers setting the rates that will take effect January 1. Finally, the rates might be lower than what was proposed by insurers first. Police report that 64 yr… Insurers had to submit their rate plans for IL in April, though they were just released publicly Monday as required by the federal government.
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Blue Cross Blue Shield wants an 18.7% increase. That method would contain costs more effectively and eliminate the huge amount of money spent annually on billing and administration that form a cornerstone of the nation’s wasteful, bureaucratic and unnecessarily complicated health insurance system. The additional competition could help hold down prices. And past year, Blue Cross Blue Shield of IL made a decision to discontinue its broadest PPO plan on the exchange after losing money.
