Posted: 8:46 p.m. Tuesday, July 30, 2013 - Atranta Journal-Constitution
Insurance chieffs claim: health care law will inflate rates
Hudgens cites eemergencyf; others say hefs playing politics
Georgia Insurance Commissioner Ralph Hudgens has filed an gemergency requesth
with the Obama administration to delay approval of rates for individual health
plans that he said will cost some consumers more than double what they are
paying today.
gIn complete contradiction to every promise made by the President with regard
to the Patient Protection and Affordable Care Act, insurance companies in
Georgia have filed rate plans increasing health insurance rates up to 198
percent for some individuals,h Hudgens said in a letter to Health and Human
Services Secretary Kathleen Sebelius. He sent the letter Monday and released it
publicly on Tuesday.
The state must approve or deny dozens of health plans to be sold on a new
federally run insurance website, called an exchange, that is critical to the
Affordable Care Actfs goal of insuring millions of Americans. The deadline to
approve plans is Wednesday, but Hudgens is asking for a 30-day extension.
gI want to protect the consumers of the state of Georgia but when these
things are going up, these prices are going up, I donft want people to blame
me,h Hudgens told the AJC. gIfm going to be up for re-election come 2014.h
Bill Custer, a Georgia State University health care expert who has reviewed
the filings, said a 198 percent increase is nowhere near typical.
gThe majority of Georgians with individual coverage will not see rate
increases anywhere near that amount and many will see rate decreases,h Custer
said.
The U.S. Health and Human Services Department is reviewing Georgiafs request,
a spokeswoman said Tuesday.
gWe are working closely with states to help them meet all deadlines and
ensure that the marketplaces are ready for consumers to begin shopping on Oct.
1.,h she said in a statement.
Outside actuaries have reviewed the plans and rates filed in Georgia by the
seven companies seeking to sell insurance on the exchange and found six of them
to be appropriately priced. Hudgens would not identify the seventh company. Even
so, Hudgens said that before he approves the rates he wants Sebelius to assess
whether the prices are appropriate.
gI am really waiting for her to come back and tell me whether she thinks they
are excessive,h said Hudgens, in an interview with The Atlanta
Journal-Constitution.
Hudgens acknowledged that the 198 percent increase mentioned in his letter
was an extreme example that applied to only one type of consumer and under rates
proposed by one company. He said consumers in their 20s who buy their own plans
are likely to see increases of about 100 percent, while older consumers who buy
their own plans will be charged 20 to 40 percent more.
Insurance experts, however, say itfs misleading to do a straight comparison
of individual rates now vs. individual rates on the exchange.
Starting Jan. 1, the health law will require insurers to sell to anyone
regardless of how healthy they are. The law also restricts how much more
insurance companies can charge older adults than their younger counterparts,
puts a limit on out-of-pocket costs for consumers and requires insurers to offer
certain essential benefits, such as free preventive care.
Depending on their income, consumers may also qualify for federal assistance
to help pay for their insurance if they arenft offered an affordable plan at
work.
Rates can vary dramatically within states; for example, rates in South
Georgia will be substantially higher than those in metro Atlanta.
In addition, some states have rejected insurersf proposals and cut rates
substantially, said Gary Claxton, a vice president at the nonproft Kaiser Family
Foundation. Others, he said, gseem to be accepting whatfs being asked for.h
Claxton added that while younger, healthier consumers will likely pay higher
premiums under the law, those under 30 who canft find affordable coverage will
be able to buy more basic catastrophic coverage that is targeted at young people
and is a lot cheaper.
State Sen. Vincent Fort (D-Atlanta) said Hudgens was simply playing politics
with his request.
gHe doesnft need Sebelius to give him a 30-day extension, or whatever he has
asked for, in order to make a decision about whether these rate increases are
justified or not,h Fort said. gI think hefs just looking for political cover in
order to not take responsibility for what he wants to do.h
Fort said Hudgens should focus more on the nearly 2 million people in Georgia
who currently lack insurance coverage.,
gI think Ralph Hudgensf time would be better spent urging the governor to
expand Medicaid, which would bring hundreds of thousands of Georgians into
health care, as opposed to playing these kinds of political games.h
The Affordable Care Act called for a dramatic expansion of Medicaid to all
low-income Americans. But the U.S. Supreme Court ruled that the federal
government may not compel the states to expand Medicaid, even if the feds paid
for the expansion, and Gov. Nathan Deal has decided against it. As a result,
hundreds of thousands of Georgians will remain uninsured.
Meanwhile, nearly 900,000 Georgians are expected to shop on the insurance
exchange. The online marketplace will mostly cater to people who donft get
health coverage through work, such as the unemployed, the self-employed and
students.
While Fort criticized Hudgensf action, state Sen. David Shafer (R-Duluth)
issued a press release applauding Hudgensf request to delay approval.
gI have always suspected that Obamacare would lead to higher health insurance
rates,h Shafer said in a statement. gBut the rate increases pending before the
Georgia Insurance Department are absolutely staggering in magnitude.h
Republican leaders in other states have voiced similar concerns.
Earlier this month, Indiana officials said individual insurance rates will
climb by an average of 72 percent next year as a result of the health law.
gThe Affordable Care Act requires many Hoosiers to purchase more
comprehensive and more expensive health insurance than they may want or need,h
Chief Deputy Insurance Commissioner Logan Harrison said in a statement. Indiana
Democrats disputed the claim.
The average cost of individual coverage in Ohio will increase from $223 to
$420 next year – an 88 percent jump, officials have said.
In New York, the average rate for individual insurance is expected to fall by
half. Experts say, however, most states wonft see such dramatic declines. Thatfs
because New York law already contains some of the key provisions of the
Affordable Care Act.