Insurers seek rate increases in Oregon

SALEM - Oregon consumers can get a first look at requests to increase rates for individual and small group health insurance plans, the Oregon Department of Consumer and Business Services announced May 23.

In addition, Moda joins BridgeSpan, PacificSource, Providence and Regence as health insurance companies that provide coverage in all parts of Oregon. It is the first time that five insurers have offered plans in every county.

In the individual market, six companies submitted rate change requests ranging from an average increase of 5% to 11.6%, for a weighted average increase of 9.3%. That average increase is higher than last year's requested weighted average increase of 6.2%.

In the small group market, eight companies submitted rate change requests ranging from an average increase of 5.7% to 16.3%, for a weighted average increase of 12.3%, which is higher than last year's requested 8.1% average increase.

The Oregon Reinsurance Program continues to help stabilize the market and lower rates, according to Consumer and Business Services. Reinsurance lowered rates by 8.4%.

"Oregon's health insurance market remains competitive, with five carriers planning to offer plans next year in every Oregon county, up from only one statewide plan in 2018," said Oregon Insurance Commissioner and DCBS Director Andrew R. Stolfi. "Unfortunately, inflation - both medical and nonmedical - as well as prescription drug costs, are driving prices higher than last year. Oregonians still have a lot of options to choose from and the Oregon Reinsurance Program continues to allow them to find reasonable rates."

Virtual public hearings about the 2025 requested health insurance rates will be July 1 from 9 a.m. to noon. A web address to watch the public hearings will be posted at OregonHealthRates.org. At the hearings, each insurance company will provide a brief presentation about its rate increase requests, answer questions from Division of Financial Regulation staff, and hear public comment from Oregonians. The public also can comment on the proposed rates at any time at OregonHealthRates.org through July 1.

"We look forward to putting these rate requests through a rigorous public review, and we encourage the public to join the virtual public hearings and provide feedback on their health insurance plans," Stolfi said. "This public process not only helps keep insurance companies accountable, but it gives people the opportunity be part of the process."

The requested rates are for plans that comply with the Affordable Care Act for small businesses and individuals who buy their own coverage rather than getting it through an employer.

Over the next two months, the division will analyze the requested rates to ensure they adequately cover Oregonians' health care costs. DFR must review and approve rates before they are charged to policyholders.

Preliminary decisions are expected to be announced in July, and final decisions will be made in August after the public hearings and comment period ends.