The Commissioner of Securities and Insurance in Montana released proposed 2017 premium rate changes from insurers selling plans on the federal marketplace that could raise premiums up to 62 percent, the Independent Record reported.
Because nearly 85 percent of Montanans receive a premium tax credit to offset costs, the increases will not affect all individuals who purchase plans from insurers on the federal marketplace. Still, some 35,000 individuals who do not receive the tax credit will face full increases.
Helena-based Blue Cross Blue Shield of Montana requested the highest rate increase for individual plans at 62 percent. BCBSM covers 55,000 of the 78,000 Montanans with individual plans through the federal marketplace. For small group plans, BCBSM also requested the highest increase at 32.1 percent, the Independent Record reported.
Another insurer, Helena-based Montana Health Co-op, requested a 22 percent increase for individual plan premiums, and Springfield, Ore.-based PacificSource requested a 19.8 percent increase. PacificSource also requested the second highest group plan increase at 6.5 percent and Montana Health requested a 3 percent increase.
All three insurers faced losses in 2015 on the federal marketplace, citing high claims and healthcare costs. BCBSM took in $174.7 million in premiums and paid out $220.6 million in 2015. Montana Health took in $73.5 million in premiums and paid out $102 million, and PacificSource took in $37 million in premiums and paid out $48.5 million in claims.
Rate changes are slated for the beginning of 2017. The Commissioner's office will hold a public hearing on the rate increases on July 26.