Obamacare rate hikes confirmed at 44 percent or higher

Aug. 02--Obamacare rate hikes confirmed at 44 percent or higher

By DAVE SOLOMON

State House Bureau

August 02. 2017 12:20AM

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The federal government forms for applying for health coverage are seen at a rally held by supporters of the Affordable Care Act, widely referred to as "Obamacare", outside the Jackson-Hinds Comprehensive Health Center in Jackson, Miss., U.S. on Oct. 4, 2013. (REUTERS/Jonathan Bachman/File Photo)

CONCORD -- The federal government on Tuesday confirmed what many in New Hampshire have feared for months -- premiums for individual health insurance policies sold on the Obamacare exchange at healthcare.gov will rise by 44 percent or more for coverage in 2018.

"Today's news about rates is alarming, especially for the 94,000 New Hampshire residents who obtain their insurance through the individual market, but unfortunately, it does not come as a surprise," Insurance Commissioner Roger Sevigny said.

"A number of factors have led to rate increases for 2018 in New Hampshire and across the country, most notably the continued uncertainty at the federal level," he said.

The Union Leader first reported in May that Obamacare exchange premiums could increase an average of 44 percent based on confidential industry documents obtained by the newspaper.

The Insurance Department uses the median premium for a silver-level plan covering a 40-year-old non-tobacco-user as a benchmark for its analysis.

For 2017, the median monthly premium in such a scenario was $335; in 2018 it will be $479, based on the carriers' proposed rates. The median increase represents a 43 percent hike year over year in the individual market.

"This is exactly what we've been saying for a long time, that Obamacare would be crashing down on the individual markets," said Greg Moore of Americans for Prosperity, the conservative policy organization.

"It speaks to the need for Congress to get back to work and come back with a more durable solution because this is failing everyone," he said. "These rate increases are simply unsustainable. Many people are going to be forced into a decision to forgo health insurance."

The rate projections assume Harvard Pilgrim and Anthem will keep offering products in 2018, as the only two companies remaining on the exchange for customers not on Medicaid.

In explaining the rate hike on the CMS website, Harvard Pilgrim states that annual rate increases by plan range from 41.9 percent to 46.1 percent, with an expected average rate increase for renewing members of 42.5 percent.

There are currently 6,483 Harvard Pilgrim customers affected by the rate increases.

Anthem cited an average annual rate increase of 45.3 percent, affecting approximately 29,000 New Hampshire customers expecting to renew in 2018.

Rates could go even higher in light of the announcement by CMS Tuesday that insurers can assume that the federal government will not be funding cost-sharing reductions for low-income customers in 2018.

Neither Anthem nor Harvard Pilgrim have confirmed that they will offer products on the exchange in 2018, but have submitted rates to keep all options open.

According to the Insurance Department, the companies have until Sept. 27 as a final date to be on the exchange. The state's review of rates is completed by Aug. 16.

The rate increases only affect policies sold on the exchange, where 94,000 New Hampshire residents get their health insurance.

Approximately 50,000 are enrolled in expanded Medicaid and not directly affected by the rate hikes. Of the remaining customers, a large number receive Obamacare subsidies that increase as the premiums increase.

But as many as 25,000 customers on the exchange receive no subsidy and will have to bear the full brunt of the premium increases on their own.

The shock waves are likely to be felt in the group market as well, where approximately 80 percent of New Hampshire residents get health insurance through their employer.

As Sevigny has said previously, "Instability in one part of the insurance market affects all parts of the insurance market."

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Politics Obamacare

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