Rising medical costs have been the primary reason behind health insurance rate increases in recent years, according to an analysis conducted by The Commonwealth Fund.
Based on a review of 311 filings from health plans covering 150 or more people in the individual and small-group markets, analysts found medical costs accounted for 75 percent or more of the larger premium increases insurers requested between July 2012 and June 2013. Here are some more key findings from the study.
1. Among insurance carriers that requested increases of 10 percent or more, the average annual premium increases were $648 in the individual market and $729 in the small-group market.
2. In the small-group market, insurers said medical costs accounted for 72 percent of requested rate increases. On average, in the individual market, insurers attributed the entire amount of rate increases to higher medical costs.
3. Between 4 percent and 5 percent of consumers in the individual and small-group markets were affected by rate increases of 10 percent of more nationally from July 2012 to July 2013.
4. Only about half (155) of the filings examined attributed any amount of the rate increases to the Patient Protection and Affordable Care Act.
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