Dive Brief:
- Six Maryland health insurers are requesting premium increases ranging from 8% to almost 30% for individual plans in the state, the Washington Business Journal reported.
- The proposals have been submitted for approval to the Maryland Insurance Administration, which plans to announce the final numbers late this summer.
- The six plans, in order from highest to lowest proposed rate increases, are Cigna Health and Life Insurance at 29.8%; Kaiser Foundation Health Plan of the Mid-Atlantic States at 25%; CareFirst of Maryland and Group Hospitalization and Medical Services (a CareFirst company) each at 16%; CareFirst BlueChoice at 12.4%; and Evergreen Health Cooperative at 8.1%.
Dive Insight:
Former HHS Secretary Kathleen Sebelius last week told Bloomberg Television that while Obamacare has extended medical insurance to about 20 million people, the new insurance exchanges are still shaky.
Maryland's rates may not be unusual as increases are expected around the U.S. as insurers correct their prices to accommodate high-cost enrollees, rising healthcare costs and the expiration of federal programs to protect insurers during the first years of the ACA.
Charles Gaba of ACASignups.net noted 15 insurers in Florida requested an average 17.7% increase for individual plans.
While Maryland's proposed rates may indeed be on the high end, in contrast California's individual rates are expected to be on the lower end at an estimated average of 8%. Among the highest hikes reported so far is an anticipated 38% to 43% increase by Wellmark Blue Cross & Blue Shield in Iowa, with about 10 of those points attributed to one high-cost patient drawing $1 million per month for care.
Maryland's insurance landscape will also be impacted by the exit of UnitedHealth. Based on the proposed rates of the six plans discussed, the monthly premium for 40 year-old Baltimore, Maryland non-smokers will range from $267.44 (Evergreen) to $414.80 (Cigna).
A public comment period on the proposed rates is open from May 16 through June 15.