Maryland insurers are looking to significantly increase rates for individual health plans sold on the state's ACA exchange in 2018, reports The Baltimore Sun.
The insurer proposing the largest increase in rates is CareFirst BlueCross BlueShield. CareFirst, the state's largest insurer, seeks state approval to increase rates by an average of more than 50 percent on individual health plans sold on the ACA exchange in Maryland, according to the report. More specifically, CareFirst asked the Maryland Insurance Administration for an average 50.4 percent increase on its health maintenance organization plans and an average 58.8 percent increase on its preferred provider organization plans.
CareFirst CEO Chet Burrell cited higher costs as the primary driver of the proposed rate increases in an interview with The Baltimore Sun. He told the publication the insurer has not been able to find a good enough balance between the number of sick people and healthy people buying plans, leading to increased costs. Although CareFirst has dealt with financial losses, he noted the insurer currently has no plans to stop selling health plans on Maryland's ACA exchange.
"We are committed to the market and think it is fundamental to our mission," he told The Baltimore Sun."We think that people need the coverage and we would make every attempt to continue it."
CareFirst is not the only insurer seeking approval to raise rates in Maryland. Cigna Health and Life Insurance Co., Kaiser Foundation Health Plan of the Mid-Atlantic States and Evergreen Health, have asked the state for an average 37.36 percent increase, an average 18.08 percent increase and an average 27.8 percent increase, respectively, according to the report.
The proposed rate increases in Maryland come as the House passed the American Health Care Act Thursday with a 217-213 vote. A final decision on the requested rate increases is expected this summer, Al Redmer Jr., commissioner of the Maryland Insurance Administration, said in a statement obtained by The Baltimore Sun.
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