Although the healthcare law stipulates health insurance rate hikes of 10 percent or more must be reviewed by state regulators, many insurers' requests for double-digit premium increases are being granted for 2013, according to a report by The New York Times.
The largest planned increases are aimed at individuals and small businesses. Blue Shield of California averaged a 12 percent rate hike for such plans, with some as high as 20 percent, despite cash reserves three times larger than required by law. In the same state, Aetna and Anthem Blue Cross proposed 22 and 26 percent spikes, respectively. Some Florida and Ohio insurers have also increased premiums upwards of 20 percent for some types of policyholders.
The Patient Protection and Affordable Care Act requires review and public disclosure from regulator's evaluation on healthcare.gov of health insurance increases of 10 percent or more, but each state's legislature decides whether regulators have the authority to block or limit those increases, as New York's and 36 other state legislatures have. California lawmakers have not granted that authority to its regulators.
Financial firm PwC estimates a 7.5 percent increase in medical costs next year, but insurers argue costs to insure policyholders in some pools are accelerating much faster, requiring them to charge more, according to the report.
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The largest planned increases are aimed at individuals and small businesses. Blue Shield of California averaged a 12 percent rate hike for such plans, with some as high as 20 percent, despite cash reserves three times larger than required by law. In the same state, Aetna and Anthem Blue Cross proposed 22 and 26 percent spikes, respectively. Some Florida and Ohio insurers have also increased premiums upwards of 20 percent for some types of policyholders.
The Patient Protection and Affordable Care Act requires review and public disclosure from regulator's evaluation on healthcare.gov of health insurance increases of 10 percent or more, but each state's legislature decides whether regulators have the authority to block or limit those increases, as New York's and 36 other state legislatures have. California lawmakers have not granted that authority to its regulators.
Financial firm PwC estimates a 7.5 percent increase in medical costs next year, but insurers argue costs to insure policyholders in some pools are accelerating much faster, requiring them to charge more, according to the report.
More Articles on the Health Insurance Rate Review:
Report: Average Health Insurer Rate Hike 1.4% Lower Than RequestedHHS: PPACA Saved Consumers $2.1B in Health Premiums
HHS: 9 States Have "Unreasonable" Health Insurance Premium Increases