HAP to exit Obamacare market as premiums set to skyrocket
HAP's exit from the Obama-era law's marketplace will leave
Nationwide, some states are down to just one or two insurers in their individual market. Insurance companies including UnitedHealthcare and Humana have opted to completely discontinue such coverage because of financial losses from individual plans.
"It's really remarkable that we have as many market plans as we do" in
However, she thinks
"We could certainly see others (exit) down the road until we get more clarity from
HAP said its exit from the marketplace will affect about 9,100 customers, representing 1.4% of its total membership. The health insurer will continue to offer individual plans that aren't on the Healthcare.gov marketplace exchange, but these plans aren't eligible for the Obama-era law's affordability subsidies and will likely be too pricey for many middle-income individuals.
The HAP pullout coincides with a looming surge in premium prices for individual plans across
Statewide, health insurers are seeking to raise premiums next year by an average 27.6%, a figure that assumes the Trump administration will discontinue so-called cost-sharing payments aimed at helping lower-income people with medical costs.
President
State officials say they haven't calculated what the average increase will be if those payments keep going, but the typical 2018 rate hike would still be double-digit percentage points.
HAP had sought from state regulators an average 24% price hike in 2018 before Friday's announcement that it will pull out of the individual marketplace. That increase was to be limited to 16% if the cost-sharing payments continued.
These higher premiums will indirectly affect taxpayers because the health care law's government subsidies will expand to cover the new, higher rates.
Reasons for the surging premiums include a sicker population among those in the individual market, skyrocketing prescription drug prices, people who drop insurance coverage after getting pricey procedures as well as young people who forgo insurance.
A recent
About 300,000 Michiganders are expected to buy individual coverage for 2018. The next open enrollment period will begin
Federal data indicates that just over 320,000 Michiganders signed up for coverage under the Affordable Care Act for 2017.
However, next year's
Officials with the
The Trump administration has also said it will cut advertising to encourage sign-ups from
The penalty for not signing up and buying health insurance is
Following the collapse this summer of a Republican effort to overhaul the health care law, Trump said he wanted to see the Affordable Care Act "fail" so that
"We'll let Obamacare fail and then the
Related:
HAP is a subsidiary of the
Announcing the insurer's decision to leave the Obamacare market, HAP President and CEO
"We will continue to advocate for stability and affordability of coverage for consumers. HAP is prepared to re-enter the
"It is now up to
Contact JC Reindl: 313-222-6631 or [email protected]. Follow him on Twitter @JCReindl. Staff writer
Health insurers in
* Blue Care Network: 22.6% -- 116,476 anticipated covered individuals.
*
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* Meridian Health Plan: 59.4% -- 6,319 individuals.
*
* Physicians Health Plan: 25.6% -- 6,548 individuals.
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