Dive Brief:
- An ongoing analysis by the Kaiser Family Foundation looks at changes in premiums for the lowest- and second-lowest cost silver marketplace plans in major cities where complete data were available on rates for all insurers.
- In those 14 cities with complete data, rates are slated to go up by an average of 4.4% in 2016. The report will be updated as additional rate information becomes available.
- Although the average increase appears modest, the fluctuation among cities is wide with percentage changes from 2015 ranging from -10.4% in Seattle to 28.7% in Minneapolis.
Dive Insight:
The 2016 rate increases, common among ACA plans finding their enrollees costlier than expected, have provided political fodder for continued debate over the ACA.
As The Hill notes, Minnesota made waves last week with its announcement some premiums in the state would rise by as much as 49%, which attracted comments from Republicans.
Mike Rothman, Minnesota's commerce commissioner, said the state approved the increases due to the high costs of plan enrollees, and insurers had been paying more than they were making.
“In this market environment, the rate review process alone is limited in what it can do to restrain rate increases,” he said.
Despite the increases, Minnesota's rates will reportedly remain among the least expensive in the U.S.