UHA plans to raise costs for Obamacare policies

Aug. 12--Health insurer University Health Alliance plans to boost premiums an average 8.9 percent next year for 7,405 members with Affordable Care Act policies.

The rate increases for UHA members employed by small businesses range from 6.5 to 15.3 percent.

"Of the 8.9 percent increase, 5.5 percent to 6 percent is attributed to medical inflation and the remainder is mainly for health insurance taxes related to the ACA that will come back in 2018," UHA President and CEO Howard Lee said in an email.

The insurer said it collected about $27.6 million in premiums in 2016 and paid total claims of roughly $21.1 million.

UHA said the 2018 rates reflect increasing medical and prescription drug costs, which include changes in reimbursement rates to providers, utilization, services and new technologies.

There will also be some benefit changes next year, including higher maximum out-of-pocket costs for prescription drugs, increased autism coverage and newly covered gender identity services, UHA said in its rate filing with the federal Centers for Medicare and Medicaid Services, which regulates plans under the ACA, also known as Obamacare.

Meanwhile the Hawaii Medical Assurance Association plans to raise rates about 1.7 percent, and UnitedHealthcare Insurance Co. is seeking a 16 percent premium increase for 38 small-business members.

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