Insurers proposing double-digit rate hikes for 2018 because of market uncertainty
By Admin | May 22, 2017
Insurance rates could skyrocket, going up as much as 60 percent in Maryland, if certain Affordable Care Act provisions go away.
Of course, rates go up for many reasons, but the driving force of these increases are admittedly removing the individual mandate penalty that makes people enroll in coverage and the cost-sharing reduction subsidies that help low-income members afford coverage.
Health insurance experts were surprised by the severity of requested rate hikes, thinking the 2017 increases were a one-time thing. But Connecticut, Maryland, and Virginia are all looking at double-digit increases anywhere from 15 to 60 percent. And this could foreshadow similar increases nationwide.
Since the rules of the market could change, insurers are basically erring on the side of caution, proposing rate hikes in order to stay in the black themselves.