CareFirst and Kaiser ask again for large rate increases

The cost of health insurance premiums would soar even more next year under rate increases requested by insurers for plans sold on the state's health insurance exchange.

The state's two insurers, CareFirst BlueCross BlueShield and Kaiser Permanente of the mid-Atlantic States, offering individual plans under the insurance program known as Obamacare requested average rate increases for 2019 that ranged from 18.5 percent to 91.4 percent, depending on the type of plan. The higher proposed rates - the fourth year of big increases - would place a huge burden on Marylanders already struggling to pay for insurance and could threaten the viability of Obamacare in Maryland, officials said.

But insurers, lawmakers, state regulators and consumer advocates hope the federal government offers a reprieve.

State officials plan to ask the Centers for Medicare & Medicaid Services for permission to establish a reinsurance program that would create a pot of money for insurers to cover the most expensive claims. In a bipartisan effort to preserve the expansion of health insurance in Maryland and rein in rising costs, the General Assembly passed legislation this spring with support from Gov. Larry Hogan opening the door for the effort.

If approved, the reinsurance program could allow the insurers to reduce their requested rate increases by as much as 30 percent. Without the program, Obamacare in the state is headed toward collapse, said Chet Burrell, CEO of CareFirst BlueCross BlueShield, the state's dominant insurer.

"I think this many years in, we are in advanced stages of a death spiral. ..," Burrell said. "Our hope is the legislation in Maryland would stabilize the premiums going forward." There is no guarantee federal officials will approve the state's plan. A similar request by Minnesota was approved, but Oklahoma pulled its application last year after it didn't get approval in time to set new rates.

Baltimore Sun reporter Jeff Barker contributed to this article.

Credit: By Andrea K. McDaniels - The Baltimore Sun