Med-insurance price-hike requests, range from 17 percent in New York, more than 20 percent in Virginia, 30 percent rate increase requests from Oregon’s largest insurers.
The underlying reasons for the big requests has to do with the expiration of the reinsurance program under the Affordable Care Act, which had served to offset some of the losses due to sicker customers who racked up high medical bills.
Without the program to offset losses, insurers are looking to reduce their risk and their losses in 2017.
It’s a big problem and it led to the exit of UnitedHealth (UNH) from 27 of the 35 states that they are in, and also Humana (HUM) has exited a handful of states.
Consumers on the lowest-tier “bronze” plans could see some of the biggest jumps in prices if preliminary requests are ultimately approved. In some cases, insurers are abandoning the low-premium offering altogether.
A unit of CareFirst Blue Cross in Virginia said it will transition all of its bronze plan members to mid-tier, or so-called silver, plans in 2017. The switch will mean a 70 percent price hike for those customers, according to the company’s rate request filing.