Maryland locks in lower premiums for individual health insurance market
Gov.
The exchange sells insurance for close to 200,000 Marylanders who do not receive health insurance coverage through an employer.
"We decided to address the crisis head-on in
Hogan, a Republican, worked with the
Hogan said the program is the largest of its kind in the country and could serve as a model for other states.
That reinsurance plan was approved by the federal government, prompting insurance companies to revise their rate requests for 2019.
The insurance companies that sell individual health plans -- CareFirst BlueCross BlueShield and
Now the rates are decreasing by between 7.4 percent and 17 percent, Hogan announced Friday.
The new rates were officially approved by the
"There is no doubt that this is -- after years of increases -- positive news for those seeking individual coverage in
CareFirst said customers who were in a preferred provider option plan may be able to get a better rate in a similar health maintenance organization, which already covers the majority of consumers. CareFirst plans to advertise the option in advance of the enrollment season that begins
CareFirst is reducing the rate on its HMO by 17 percent, while rates on the PPO will decline 11.1 percent. It had been seeking increases of 18.5 percent on the HMO and 91.4 percent on the PPO.
Kaiser, which had sought a 37.4 percent increase for its HMO, now will reduce that rate by 7.4 percent.
"We are pleased that we were able to decrease our rates from 2018 as a direct result of the implementation of the reinsurance program," said
Rising rates have been a major burden for the 20 percent of consumers who do not qualify for the exchange's federal subsidies. The number of people buying plans on the exchange or directly from an insurer has dropped by about 18 percent since 2015, according to state insurance figures, though people drop coverage for a number of reasons other than cost.
"Lower rates, more people insured and protected and less uncompensated care is a positive for everyone," she said.
"This is an extremely important step toward more affordable coverage for individuals, particularly those who have to pay for insurance themselves without any financial assistance," she said. "They have been severely impacted by what is going on in the market."
She cautioned, however, that the reinsurance program ends in five years and officials need to find permanent solutions. She said a state-created commission is exploring a half-dozen measures, including a "public option" that would allow consumers to buy into the low-income government plan Medicaid, a state-level mandate to buy coverage since the federal one was dropped, additional subsidies and combining the individual and small business markets.
Some recommendations could be made in time for the next
He is advocating for a universal health care system where everyone buys into Medicare, the government plan for seniors.
"Today's announcement is the product of hard work by
Nonetheless, Hogan and Redmer took the opportunity to portray the process as standing up to help Marylanders in the face of dysfunction at the federal level.
"Because of the inability of
Added Redmer: "We decided we had to do what we could do at the state level."
Friday's event also afforded Hogan and Redmer an opportunity to again promote their efforts at a time when both are running for office. Hogan is seeking re-election, while Redmer is running as a Republican for
Hogan held a ceremony in April when he signed the reinsurance bill and the governor held a State House news conference with legislative leaders in August to announce that the federal government had approved the state's plans.
Redmer said the magnitude of the rate drops warranted another event at the State House, and said there weren't any political calculations.
"The alternative is we don't share important news to
While Hogan is facing Democrat
Redmer's county campaign involves a steady schedule of fundraisers, candidate forums and community events, sometimes during traditional working hours.
"I am running the
On the campaign trail, Redmer proudly plays up his ties with the popular governor, saying that if they're both elected, they'll work together for the benefit of
Redmer's bright red and yellow signs carry the tagline: "Governor HOGAN Endorsed."
Hogan was the featured guest at Redmer's campaign kickoff last year, and appears in web videos and direct mail in support of Redmer.
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