Highmark Seeks Double-Digit Increase
By Alex Nixon, The Pittsburgh Tribune-Review | |
McClatchy-Tribune Information Services |
The state's largest health insurer is canceling most of its old individual plans, which often were less expensive because they didn't meet more robust coverage requirements of
The move may funnel thousands of policyholders into more expensive plans and possibly reignite a political controversy in which Obama was criticized for telling people they would be able to keep their health plans if they liked them.
Even if state regulators approve Highmark's average rate increases of 13.4 percent and 15 percent as requested, the insurer's policies are likely to remain priced well below its competition in
"Frankly, we were concerned that they might be far worse," said
Highmark's prices during the last open enrollment were the lowest in the state and about 40 percent less expensive than comparable plans from
"They didn't know who was going to enroll, so it was almost impossible to evaluate the risk," McTiernan said. "It's a fairly big number, but they should still be pretty competitive."
The
"People had pent-up demands for care, and they were fairly large users of services last year," Highmark spokesman
More than 131,000 people in the state bought Highmark's plans that were sold on Healthcare.gov during the last open enrollment period. About 46,000 purchased plans directly from Highmark.
Highmark is one of three carriers in the state to request rate increases of 10 percent or higher, which triggers a requirement in the Affordable Care Act that state officials conduct a review.
The department is not reviewing rates for
Across the country, insurers have been raising their exchange premiums.
But the consulting and accounting firm cautioned that "premium prices vary significantly across states," ranging from a decrease of 22 percent to an increase of 35 percent.
Open enrollment on the federal exchange Healthcare.gov starts in less than four weeks, on
The lack of information leaves people such as
The 58-year-old from Ross was able to extend his policy for an extra year last fall even though it doesn't provide for all the 10 essential health benefits that Obamacare plans must cover.
He would prefer to keep what he has because the plan has a premium of about
"It's really good and has a lower deductible, that's what makes it attractive," he said. "That's why I'd like to keep it."
Last fall, Highmark allowed about 140,000 of its individual members to extend their plans for an extra year rather than be forced into a health law-compliant one.
Billger said the insurer is terminating four out of five of the extended plans, but he declined to say how many people were being canceled.
To keep the old policies viable, Billger said Highmark would have had to raise premiums significantly.
"They would have been at the price of exchange products," he said. "So now they get richer benefits."
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