Pennsylvania Insurance Commissioner Makes Complete 2018 Rate Filings Public, Stresses Immediate Need for Certainty from Congress and the Trump Administration

HARRISBURG, Pa., July 21, 2017 /PRNewswire-USNewswire/ -- Insurance Commissioner Teresa Miller today announced that rate filings for 2018 individual market and small group plans and additional materials that help explain county-level impacts of these filings are available on the department's website. Insurers are seeking a statewide average increase of 8.8 percent for individual plans and 6.7 percent for small group plans, but this could be adversely affected by actions taken by the Trump Administration or Congress against the Affordable Care Act.

"Pennsylvania's individual market is stabilizing, and the current rate requests we see, which are in line with the annual trend in medical costs, are proof of this," said Commissioner Miller. "But that stability is not absolute. For months, I have asked Congress and the Trump Administration to help stabilize the individual market rather than trying to undermine the entire law, which will only hurt the real Pennsylvanians who benefit from the law."

A recent study on 2018 rate increases across the country by Oliver Wyman management consultants predicted the annual trend in the cost of care would result in a 5 to 8 percent increase in rates, and the return of a federal health insurer tax would account for another 3 percent – putting Pennsylvania's 8.8 percent request near the minimum expected increase.

If changes are made to the individual mandate or the law's cost-sharing reduction payments, Pennsylvanians would see significant premium increases. Pennsylvania's five individual market health insurers estimate that if cost-sharing reduction payments were not made, they would need to request a statewide average 20.3 percent rate increase. If the individual mandate is not enforced, they say they would seek a 23.3 percent rate increase. If both changes occur, insurers estimate that they would seek an increase of 36.3 percent, assuming the insurers continue to participate in the market.

"The 506,000 Pennsylvanians in the individual market deserve single-digit average rate increases," said Commissioner Miller. "If Congress and the Trump Administration do not make a long-term commitment to insurers to preserve the rules that are currently in place, they alone will be responsible for raising prices for consumers and risking insurers exiting the market."

Companies have until the end of September to commit to participating in the market for 2018. Because of this, Commissioner Miller stressed that the commitment to stability from the federal government is needed immediately.

"As it stands, our insurers are committed to the individual market and the population it serves, but they desperately need certainty from the federal government," said Commissioner Miller. "Congress and the Trump Administration should take ownership of their power in this situation and use it to help the millions of people in individual markets across the country rather than looking for another way to sabotage the Affordable Care Act."

Final approved rates for 2018 plans will be made public in mid-October.

Public comment on rate requests and filings will be accepted for 30 days and can be emailed to [email protected]. Additionally, the Pennsylvania Insurance Department will hold in-person town hall meetings to discuss the rate review process and provide an opportunity for feedback on requested rates. Currently scheduled meetings are:

• August 3, 6:30 p.m. – Degenstein Library, 40 S. 5^th Street, Sunbury, PA
• August 14, 6:30 p.m. – Altoona Library, 1600 5^th Avenue, Altoona, PA
• August 30, 7 p.m. – Free Library of Northampton Township, 25 Upper Holland Road, Richboro, PA
• September 6, 6:30 p.m. – Western Allegheny Community Library, 181 Bateman Road, Oakdale, PA

Additional dates and locations will be posted on the department's Facebook page and at www.insurance.pa.gov as they are scheduled.

For more information on health insurance rates and how they are filed, visit http://www.insurance.pa.gov/Consumers/HealthInsuranceFilings/Pages/default.aspx. 

MEDIA CONTACT:  Ali Fogarty, 717.787.3289

SOURCE Pennsylvania Insurance Department

Related Links

http://www.insurance.pa.gov