Horizon, AmeriHealth raise NJ Obamacare prices after Trump moves

Oct. 18--Two New Jersey insurers will increase premiums for the individual market by at least 16 percent for 2018 after the Trump administration weakened key portions of Obamacare by cutting taxpayer subsidies to insurers, the companies said Tuesday.

Both Horizon Blue Cross Blue Shield of New Jersey and AmeriHealth New Jersey filed for higher rates after President Donald Trump's moves threatened to leave them with an older, less healthy customer base that they will need to cover.

"The federal government's actions will drive costs higher and create additional uncertainty, making a volatile situation even worse," said David Huber, Horizon's vice president and chief financial officer.

The two insurance companies, along with a new player, Oscar Health, on Tuesday released their premiums for 2018.

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It was the first indication of the financial impact of Trump's bid to unravel the Patient Protection and Affordable Care Act, commonly called Obamacare, which was designed to cover almost all Americans and slow down the cost of health care.

The individual market covers about 240,000 New Jerseyans, or 4 percent of consumers. It is open to consumers not insured by their employer, Medicare or Medicaid.

Getting people covered in the individual market has proven to be a headache. It included two sets of subsidies to try to make plans more affordable: Consumers are eligible for subsidies to help pay for premiums; and lower-income consumers are eligible for subsidies to help pay out-of-pocket costs.

Trump has made its repeal and replacement a priority. While legislation stalled, he took action to chip away. He weakened enforcement of the requirement that nearly all Americans have insurance or pay a penalty; and he stopped reimbursing insurers for the subsidies they provided low-income consumers.

Horizon said it increased premiums from 16 percent to 28 percent, with the goal of breaking even. Without the Trump administration's steps, the average increase would have been 9.6 percent, it said.

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AmeriHealth New Jersey said its average rate increase of 17.1 percent was "based on many uncertainties in the individual market."

The uncertainty isn't over. U.S. Senators on Tuesday said they reached an agreement to reinstate the so-called cost-sharing subsidies with insurers for low-income consumers. And Trump reportedly pledged his support.

But even if the bill passes, it isn't clear if the New Jersey Department of Banking and Insurance will allow insurers to re-file their rates.

Open enrollment is scheduled to begin Nov. 1.

Rates released Tuesday showed a middle-of-the-road silver plan will cost on average $311.86 a month for AmeriHealth New Jersey; $346.72 for Horizon; and $349.30 for Oscar.

Consumers in the individual market might be shielded from the full price increase. In New Jersey, 80 percent get subsidies to help pay their premiums. "As premiums go up for a silver plan, so does the federal subsidy," said Ward Sanders, president of the New Jersey Association of Health Plans, which represents insurers.

Michael L. Diamond; 732-643-4038; mdiamond@gannettnj.com

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