State regulators raise medical insurance rates; Move follows White House announcement that it will end subsidies to insurers
The
Plans sold by CareFirst BlueCross BlueShield and
The new rate rises only apply to consumers who buy silver plans on the state exchange under the Affordable Care Act, also known as Obamacare. Those who receive subsidies are required to buy these middle-of-the-road plans. About 96,000 Marylanders were expected to enroll in those plans this year, according to the insurance administration.
The insurance regulators said the majority of consumers who face rate increases will get a separate subsidy to offset the more expensive premiums. When their premiums rise, the second subsidy, called a premium tax credit, also will increase. Those who don't qualify for additional subsidies can shop around for another plan.
"Our goal was to minimize the impact on as many consumers as possible," said Insurance Commissioner
The commission approved higher rates for Kaiser plans than the insurer had requested and lower rates for
Kaiser asked for a 33.3 percent increase and was granted 43.4 percent.
"We regret that this issue had to be addressed at all - but we believe the outcome is fair to all involved," Burrell said in a statement. "Most particularly, we are concerned about our members who have bought Silver plans on the Maryland Exchange since they are the ones affected by this decision. However, they will receive higher premium tax subsidies that will largely offset the increase in premiums made necessary by
"While the administration's decision to stop funding cost sharing reductions introduced significant uncertainty and risk into the marketplace,
The advocacy group Consumer Health First had urged the insurance administration to require
"We are pleased Commissioner Redmer reached the same conclusion as this offers the greatest protection for
Sammis said it is more important than ever for consumers to explore plan options in detail, rather than choose an automatic renewal, once enrollment begins
Some may find it more cost-effective to buy another level plan rather than a silver plan, she recommended. Consumers who do not qualify for a tax credit and decide a silver plan best meets their needs should purchase it off the exchange rather than pay the higher premium for the same plan on the exchange, Sammis suggested.
"We highly recommend that consumers seek professional assistance this year when making health plan choices by talking to an insurance broker or to navigators," she said.
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