Georgia Seeks Delay On Health Insurance Rate Approval
By Andy Miller, Georgia Health News
July 30th, 2013, 5:17 PM
This story comes from our partner Georgia Health News.
Georgiafs insurance commissioner has asked for an gemergency delayff of a
deadline for approving proposed premiums in the state exchange – an online
marketplace – set to roll out under the health reform law.
The commissioner, Ralph Hudgens, cited eemassive rate increasesff in the
insurersf proposals that led him to make his request.
The deadline for state regulators to approve the insurance rates for the
exchanges is Wednesday. Hudgens told
GHN on Tuesday that Georgia is the only state that has asked for a 30-day
extension to continue to analyze the rate increases.
gI was always skeptical of Obamacare,h said Hudgens, a Republican who, like
many political leaders in his party, opposed the Affordable Care Act. gBut
I never imagined that it would lead to rates being doubled or tripled.h
Nearly everyone with an individual policy will see their premiums rise, he
said.
The increases are up to 198 percent for individuals, Hudgens said in a
statement Tuesday. gIncreases of this magnitude will make coverage less
affordable and increase the number of uninsured in Georgia.h
Consumer advocates, though, pointed out that under the ACA, many individuals
will have a subsidy to
help offset the cost of a premium.
In addition, the current system locks out people with pre-existing health
conditions, according to Cindy Zeldin of the group Georgians
for a Healthy Future, which strongly supports the ACA.
The current average rate for an individual policy gis only average for people
whom the insurance industry wanted to cover,ff Zeldin said. With the health law,
she said, gmany more people will gain coverage.ff
Hudgens told GHN that his agency had four independent actuaries review the
rates submitted for the health insurance exchange in Georgia, which will be run
by the federal government.
Six of the seven health insurers had greasonableff rates, but one company
submitted premiums that were 11 percent too high, Hudgens said. He did not
identify the company with the highest rates.
Hudgens said he is asking Health and Human Services Secretary Kathleen
Sebelius to review the Georgia premiums as well. Hudgens asked that HHS respond
to his request for an extension by close of business Tuesday.
An HHS spokesperson told GHN by email late Tuesday that 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 October 1. We have
received Georgiafs request and are reviewing it.h
Nationally, premiums in the health exchanges have been reported higher than
current rates in some states but lower in others. The
insurance commissioner in Florida said the individual market will see rate
increases of 30 percent to 40 percent for next year.
New
York state recently announced insurance premiums would drop 50 percent next
year for individuals buying their own coverage in the new online marketplaces.
But thatfs because New York already bars insurers from rejecting people with
health problems — a rule that the ACA will be instituting nationwide.
In Maryland, meanwhile, the
insurance commissioner reduced the premium rates proposed by every insurance
carrier in the individual market, some by more than 50 percent, according to an
analysis by Maryland officials who will be operating the marketplace.
Zeldin urged Hudgens and his staff to follow Marylandfs lead and work to
lower the proposed premiums.
The preliminary filings of exchange rates in May showed that companies are
offering rates comparable to or even below current employer premiums, said Bill
Custer, a health insurance expert at Georgia State University, who was asked to
evaluate the filings for GHN.
Custer compared the filings to large employersf average premiums, which
include unhealthy as well as healthy workers, and whose coverage is comparable
to that in an exchange.
Graham Thompson, executive director of the Georgia Association of Health
Plans, an industry group, said Tuesday that a majority of people are going to
see their premiums increase because of the changes under the Affordable Care
Act.
The more robust coverage requirements under the reform law gcome with higher
costs,ff he said.
gThere will be extremes at both ends of the spectrum,ff Thompson said.
gYoung, healthy people will see more rate shock,ff while older people who are
unhealthy will see decreases.
But the 198 percent increase, Thompson added, gis an extreme case.ff
Hudgens also said the benefits required under the exchange, or marketplace,
are more sweeping than under the present system. gTheyfre saying that the only
thing available is a Cadillac, not a stripped-down Chevrolet,ff he said.
Young people under 35 will see increases of more than 100 percent, Hudgens
said. Middle-aged people will see hikes of up to 100 percent, and older
residents will face increases of up to 40 percent, he said.
He predicted that many young people will skip the required coverage and
instead pay the penalty for not having it, which is $95 or 1 percent of
household income, whichever is greater.
This entry was posted on Tuesday, July 30th,
2013 at 5:17 pm.