The top ObamaCare exchange insurers in six states where 2016 rate requests have already been filed are seeking to raise rates an average 18.6% next year.
Early reports range from an alarming 36% hike sought by the dominant insurer in Tennessee, to a hefty 23% average increase requested by Oregon insurers, to a moderate 7.7% average rise proposed in Connecticut.
The very limited data and the possibility that these initial requested rates might change, as they did in a significant way last year, make it hard to draw firm conclusions. But so far it appears that the Congressional Budget Office was on target in projecting a significantly bigger overall increase than in 2015.
The CBO has said it expects ObamaCare exchange premiums to rise an average of 8.5% per year over the next three years. That's partly due to the scheduled phasing-out of temporary government programs to protect insurer bottom lines from high-cost enrollees.
BlueCross Tennessee Wants 36% Hike
BlueCross BlueShield of Tennessee is seeking a 36.3% premium hike for its 165,000 members, comprising 70% of the market, the Tennessean reported. A check of HealthCare.gov shows that only Humana (NYSE:HUM), which is asking for a 15.8% increase, offers a silver plan in Memphis within 40% of the cheapest BCBS offering.
For anyone who doesn't get subsidies, these increases would deliver a shock. The vast majority who do get subsidies will be shielded from higher premiums because their contribution is a fixed percentage of income, leaving the government to pay the difference.
On Friday, Maryland said that CareFirst is seeking premium hikes of close to 30% for the nearly 80% of exchange members it covers. The No. 2 insurer on the Maryland Health Connection, Kaiser Permanente, proposed a modest 4.8% increase.
In Michigan, where the individual market is dominated by Blue Cross Blue Shield of Michigan and its Blue Care HMO, insurers want an estimated 9.8% premium hike.Read the rest of the story HERE.
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