Illinois Stays Mum On Health Insurance Rates For 2018
June 27--Illinois residents will not know until Aug. 1 which health insurers intend to offer plans on the state's Obamacare exchange next year -- and at what prices -- though that information is already available in more than a dozen other states.
Consumer advocates say it's information that could help Illinois residents prepare for next year as well as inform their opinions as the Senate weighs the latest proposal to revamp the health care law. The Senate on Tuesday delayed a vote on its proposal to overhaul the law until after its July Fourth recess.
"Having that information would only allow us to have a better informed conversation," said Kathy Waligora, director of the health reform initiative of EverThrive Illinois, which, along with other advocacy organizations, has asked the state to release the information earlier this year.
But the Illinois Department of Insurance does not plan to make the information public before Aug. 1, when the federal government is expected to post it online. The deadline for insurers to file proposed rates with the state was June 21.
"Releasing the initial filings could undermine our mission by potentially creating confusion among Illinois consumers and prompting insurers to revise rates based on initial competitors' rates rather than actuarial analysis," Michael Batkins, a spokesman for the Insurance Department, wrote in an email.
Most Illinois residents get health insurance through employers or through government programs such as Medicaid or Medicare. But this year more than 350,000 Illinois residents enrolled in plans through the Obamacare exchange.
A number of states already have seen significant upheaval when it comes to insurers' plans for the exchanges next year. Insurers in some states have announced plans to pull out of the exchanges and in other states, insurers have proposed double-digit rate increases for next year.
Obamacare opponents point to such insurer exits and rate increases as proof the law is failing. A number of insurance companies, however, have cited current uncertainty over the law's future as a reason for raising rates, said Sabrina Corlette, a research professor at Georgetown University's Center on Health Insurance Reforms.
In Illinois, the state's largest insurer, Blue Cross and Blue Shield of Illinois, has confirmed that it filed proposed rates with the state, but other insurers haven't publicly revealed their intentions.
This year, Blue Cross raised premiums for individual exchange plans in Illinois by 43 to 60 percent, and it has said potential changes related to the Affordable Care Act could lead to "significant" increases again next year.
"We think it would be very helpful for consumers to know what to expect and what carriers in Illinois are thinking about," said Stephani Becker, a senior policy specialist at the Sargent Shriver National Center on Poverty Law. "With the process as quick as it is, it's very, very difficult for consumers to really weigh in or see what's going on until the rates become final."
Illinois is what's known as a "file and use" state, meaning the state doesn't have the power to change or reject insurers' proposed rates, though it can negotiate with insurers in hopes of persuading them to come down.
In some cases, public input has helped lead to lower final rates in some states, Corlette said.
"I do think that shining a light on these rates and what's driving them from the very beginning of the process is ultimately to the benefit of the consumer," Corlette said.
Katherine Hempstead, a senior adviser at the Robert Wood Johnson Foundation, said she too understands the desire for the information as soon as possible. But she pointed out that even if consumers had the rate proposals now, it's possible they could still change significantly depending on what happens with the health care law.
"The quality of early rate information is a little questionable this year even if you had it," Hempstead said.
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