Pennsylvania Premiums Could Increase 20% in 2018 Without CSRs

A double-digit rate increase could seriously affect a significant number of states if Congress and the Trump Administration fail to fund key ACA cost-sharing reductions to insurers, according to a press release from the Pennsylvania Insurance Commissioner.

Teresa Miller, Insurance Commissioner of Pennsylvania, recently announced that the state’s five health insurers will remain in the market, fielding plans for 2018 with statewide rate increases of 8.8% for individual plans and 6.6% for small group plans. 

“These low percentages show that Pennsylvania’s market is stabilizing and insurers are better understanding the markets and the population they serve,” Ms Miller said in the press release. “I sincerely hope that Congress and the Trump Administration do not take action that could negatively impact the progress we have made in Pennsylvania.”

Furthermore, if the individual ACA mandate is repealed, the five insurers would seek a 23% rate increase statewide. If cost-sharing reductions remain unpaid to insurers, the result would be a 20% rate increase. If both of the aforementioned changes occurred, insurers could seek a staggering 36% increase.

“Information provided by insurers shows the extent to which instability and changes would impact Pennsylvania’s 2018 health insurance rates,” Ms Miller said. “This proves what we already know—instability caused by adverse action from the federal government will do nothing but hurt consumers who are stuck in the middle.” 

Insurers have already threatened to hike premiums or even pull out of the ACA markets come 2018 if they do not receive payments known as cost-sharing reductions. The cost-sharing reductions reimburse insurers for supplying discounted deductibles to lower income customers. The Trump Administrations made these payments for May but has yet to announce decisions for future payments. 

“The 506,000 Pennsylvanians with Affordable Care Act-compliant plans in the individual market deserve single-digit rate increases,” Ms Miller said. “Like the ones most people will see if Congress and the Trump Administration choose not to risk consumers’ health and financial well-being by jeopardizing the stability of these markets.” —Chris Evangelista