HARRISBURG — Pennsylvania Insurance Commissioner Teresa Miller released rate filings for 2018 individual market and small group insurance plans and additional materials that help explain county-level impacts on the department’s website, a press release announced Friday.
Insurers are seeking a statewide average increase of 8.8 percent for individual plans, and 6.7 percent for small group plans.
According to Miller’s press release, a recent study on 2018 rate increases across the country by Oliver Wyman management consultants predicted the annual trend in the cost of care would result in a 5 to 8 percent increase in rates, and the return of a federal health insurer tax would account for another 3 percent – putting Pennsylvania’s 8.8 percent request near the minimum expected increase.
If changes are made to the individual mandate or the law’s cost-sharing reduction payments, Miller said, Pennsylvanians would see significant premium increases.
Pennsylvania’s five individual market health insurers estimate that if cost-sharing reduction payments were not made, they would need to request a statewide average 20.3 percent rate increase. If the individual mandate is not enforced, they say they would seek a 23.3 percent rate increase. If both changes occur, insurers estimate that they would seek an increase of 36.3 percent, assuming the insurers continue to participate in the market.
Companies have until the end of September to commit to participating in the market for 2018. Because of this, Miller stressed that the commitment to stability from the federal government is needed immediately.
