Highmark Blue Cross Blue Shield of Delaware and Aetna, Inc. are seeking sharply higher rates for individual and small group plans to be offered on Delaware’s Health Insurance Marketplace in 2016.
Highmark is asking for a 25.4% increase in the individual market, while Aetna wants a 16% increase. In the small group market, Highmark seeks a 12.7% increase, while Aetna is asking for a 6.1% decrease.
“Large rate increase requests like these are occurring in several states across the country and I know they will cause a hardship for many Delawareans,” said state Insurance Commissioner Karen Weldin Stewart. “The increases are substantial and I’m going to do my best to reduce them. I am instructing my actuaries to examine vigorously Highmark’s and Aetna’s supporting data for the requests.”
The rate hikes have been seen elsewhere in the county as the Affordable Health Act enters its third year and insurers get more of a track record on claims. Other factors include people moving to the marketplace from barebones health plans that do not have the coverage required under the Affordable Care Act.
Delaware is hampered by the lack of insurers that would increase competition, some claim.
Stewart also announced that the Insurance Department will conduct public information sessions in June to receive comment on the proposed rate increases. The sessions will take place at the following locations in the three counties:
Monday, June 15 1:00pm Del Tech Owens Campus, Georgetown
Monday, June 15 6:00pm Insurance Department, 841 Silver Lake Blvd., Dover
Tuesday, June 16 6:00pm Carvel State Office Building, 820 N. French St., Wilmington
Representatives from Highmark and Aetna will be present at each session. Consumers an interested parties may also submit written comments to the Department at ratedivision@state.de.us
for 30 days between June 15 and July 15, 2015.
The staff at insurance department reviews rate filings and independent actuaries retained by DOI review the supporting data to see if the rate changes are justified by the circumstances as presented by the insurance companies. The rate requests and theinsurers’ justifications will be posted at www.delawareinsurance.gov during the 30-day comment
The Commissioner reviews the actuaries’ findings and the public comment and works with the insurers to arrive at a rate. That rate is submitted to the Centers for Medicare & Medicaid Services (CMS) for subsequent review. CMS must follow its own regulations and Delaware law before finally approving or denying the requests.
