After reviewing Oregon payers' 2017 proposed insurance premium rates, the Oregon Department of Consumer and Business Services forecast up to 32 percent rate increases for individuals purchasing plans on the state's marketplace, The Bulletin reported.
Here are six things to know about the increases.
1. The largest discrepancy between proposed rates and those granted by the department was Health Net Health Plan of Oregon's proposed 0 percent increase for individual plan rates, upped by state regulators to 9.8 percent on grounds the insurer will need to raise rates to cover its proposed 2017 claims, The Bulletin reported.
2. The premium increases mirror proposed hikes for 2016, in which insurance regulators again increased the payers' proposals. Payers in Oregon lost around $217 million in 2015 as a result of a shaky individual market.
3. Insurance regulators said the increases will curb continued losses and stop payers from leaving the market. The rising cost of medical services, ending subsidies under the Affordable Care Act and underpriced plans led to the increase, Insurance Commissioner Laura Cali told The Bulletin. "Some of the carriers that have lost significant amounts of money over the last few years have diminished capacity to continue absorbing losses," Ms. Cali said. "So it is really important that we get these rates back to adequate."
4. In addition to the rate increases, only three carriers in central Oregon — BridgeSpan, Oregon's Health CO-OP and PacificSource Health Plans — will offer individual coverage on the state's marketplace. This is a decrease from nine payers. The three remaining payers proposed double digit increases, ranging from 15 percent to 32 percent.
5. Other shakeups may come from Regence Blue Cross Blue Shield of Oregon and Health Net, who both wish to sell outside the exchange, meaning consumers would not receive tax credits to subsidize bills. Two of Oregon's largest payers, Moda and Providence, left the individual market, and LifeWise will depart next year.
6. In total, nineteen counties in Oregon will have five payers come 2017.
Public hearings will be held in the coming weeks, where payers can appeal the rate changes before they are finalized July 1.