Dive Brief:
- The main insurers on health exchanges in six states where rate requests have already been filed for 2016 are looking to raise premiums by an average 18.6% next year.
- While the data is limited and preliminary because rate requests may change, experts note that the Congressional Budget Office was on target in projecting a significantly larger increase than occurred in 2015.
- Current reports range from a 7.7% average hike sought in Connecticut to a massive 36% hike requested by BlueCross Tennessee.
Dive Insight:
According to predictions by the Congressional Budget Office, ACA exchange premiums can be expected to increase by an average of 8.5% per year over the next three years. Some of that increase is due to the phasing out of temporary government programs that have helped protect health insurers from the possible fallout of absorbing high-cost enrollees.
As Investor's Business Daily notes, these increases would be a shock for anyone who doesn't receive subsidies. However, the majority of those who do get subsidies will be protected from the increases because they pay a fixed percentage of their income, and it's the government that will be left to pay the difference.
According to the Oregon State Public Interest Research Group, the average proposed increase for Oregon in 2016, 23%, is the highest the state has seen since 2010.