Oregon regulators trim proposed health insurance rates

Oregon insurance regulators have cut the health insurance rate increases proposed by insurers earlier this year but individuals are still likely to pay an increase of 5% and could see rates jump by 11%.

Financial specialists in the Department of Consumer and Business Services said in a release Wednesday, July 31, they had lowered the rate increases proposed by five companies offering plans on the individual market while keeping the rate proposed by Kaiser Foundation Health Plan the same. The changes would cut the weighted average increase for all companies from 9.3% to 8.1%. They left Kaiser Foundation Health Plan's rate as is at 5% — the lowest of six companies that will offer individual plans next year.

Most Oregonians are insured through their employer, Medicaid or Medicare. About 145,000 residents purchased health insurance policies for this year on the federal marketplace, which is the only way to obtain subsidies.

The rate reviews will go up for final public comment next week (see sidebar), and officials will make a final decision later this month.

The rate cuts proposed by the department followed months of review by the public and state insurance regulators to make sure the policies comply with the Affordable Care Act, which requires that insurance cover certain preventive procedures at no extra cost. The reductions in the rates the companies first proposed in May follow a determination by officials that components of several company filings were above allowed limits.

Under the law, the state is in charge of reviewing and revising rates to ensure they are "reasonable and not excessive, inadequate or unfairly discriminatory."

"I'm glad we were able to find ways to save Oregonians money in a time when budgets are tight," Andrew Stolfi, Oregon's insurance commissioner, said in a release. "Our health insurance market is competitive, and we have five carriers offering plans in every Oregon county next year, which gives Oregonians more options to shop for plans to fit their budget."

Regulators made the biggest cut to Moda Health Plan's proposed 9.4% rate increase, trimming it to 7.6%. They trimmed Providence Health Plans' proposal by 1.7%, bringing it to an increase of 9.5%. The biggest rate increase will be in PacificSource Health Plans, at 11.1%, just down from an initial 11.6% proposed by the company.

Regulators also reviewed rates proposed by eight insurers who offer plans on the small group market to employers with up to 50 staff members. Those rates could go up an average of 12.2% if the current rates stand after public comment. Regulators only trimmed the proposals of two insurers: They brought UnitedHealthcare Insurance Co.'s proposal down from an increase of 13.2% to 12.7% and UnitedHealthcare of Oregon's down from 18.8% to 13.3%.

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