Sendero Health Plans, an offshoot of taxpayer-supported
People eligible for federal subsidies will be shielded from the proposed premium increases, but those who buy plans on the Obamacare marketplace but earn too much for subsidies will have to pay them. The 2019 rates still must be approved by the federal government.
Officials of both
The higher premiums are necessary "because we need to make sure that we have the funds to pay for people's health care," Geeslin told the
Sendero's mid-level -- or "silver" -- plan for a 40-year-old
Geeslin said Sendero still will be offering quality plans at good value if the rate increase takes effect, particularly when factors such as deductibles, co-pays and breadth of health network are considered.
Sendero has been struggling financially beyond the Affordable Care Act, however, and in May it stopped providing Medicaid plans and plans under the
The nonprofit, which provides Affordable Care Act plans in
But Sendero CEO
Nationwide, health insurers that sell Affordable Care Act plans -- most of which are for-profit companies -- have been requesting relatively small rate increases for 2019 compared to previous years, and some, such as
"Insurers are doing quite well in the individual market under the (Affordable Care Act), and many are starting to turn a profit for the first time," said
Requests for rate increases are averaging about 5.4 percent from insurers in states such as
Last year, premiums went up steeply across
Both Sendero and Celtic raised their 2018 premiums by about 47 percent, and
Kamal said the biggest uncertainty facing insurers heading into 2019 is the end of the federal mandate that requires individuals to have health insurance or pay a penalty. The Republican-led Congress approved a tax reform bill that repeals the so-called "individual mandate" for health insurance beginning
"It's possible (the lack of a penalty) will lead to fewer healthier people signing up for coverage," Kamal said, which would impact the profitability of insurers if they're left with a pool of policyholders who are sicker on average and require greater amounts of medical care.
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