Requested premiums for 2018 ACA exchange plans about 18% higher than last year, Avalere finds

Premiums for the most popular health plans sold on the ACA exchanges are tracking an average 18 percent higher than last year, according to an Avalere analysis of 2018 rate requests filed by insurers across eight states.

Avalere researchers pointed to uncertainty regarding the ACA and the law's cost-sharing reductions as reason for the hikes. In addition, the analysis said the proposed increases are influenced by insufficient risk-mitigation programs, lower-than-anticipated exchange enrollment and fewer plans participating on the ACA exchanges this year.

The analysis stated, however, "most consumers still have the opportunity to select lower premium plans and those who do may experience smaller changes in annual costs. For example, initial rate filings show premium increases of 11 percent and 12 percent for lowest cost and second lowest cost silver plans, respectively."

In addition to higher premiums, 41 percent of U.S. counties may only have one insurer selling coverage on the ACA exchange for 2018, compared to 33 percent last year. CMS recently reported 47 — or about 35,000 Americans — will lack an on-exchange insurer for 2018.

Avalere experts concluded "given the uncertainty in the exchanges and pending legislation, insurer participation decisions are likely to evolve over the summer with additional entries and exits likely." 

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