The Delaware Department of Insurance (“DOI”) has received a proposed rate increase request from Highmark Blue Cross Blue Shield of Delaware for a 33.6 percent rate hike for its 2018 individual Marketplace business.
This requested rate increase assumes that the cost-sharing subsidies and individual mandate will not be in place for 2018. Republicans in Congress are considering “repeal and replace” legislation for the Affordable Care Act.
Highmark BCBSD’s proposed rate will be studied by the Insurance Department and its independent actuaries before a final rate is determined.
In May, Aetna, Inc. (“Aetna”) announced its plans to withdraw from the Affordable Care Act’s (“ACA”) Insurance Marketplace effective January 1, 2018. This leaves Highmark BCBSD as the only health insurer to have filed products and rates for Delaware’s 2018 “Obamacare” market
This leaves Highmark BCBSD as the only health insurer to have filed products and rates for Delaware’s 2018 “Obamacare” market.
“This news makes clear what we’ve known for months – the federal government’s continued sabotage of the Affordable Care Act is creating tremendous uncertainty in our individual insurance marketplaces,” said U.S. Sen. Tom Carper, D-Delaware. “The result is skyrocketing premiums for hardworking families who may no longer be able to afford coverage. Every American should be able to get to the doctor to stay as healthy as possible and to get treatment when they’re sick, and we in Congress should be doing everything we can to make that possible. Every day, but especially today, my colleagues and I should summon our better angels and work across party lines to make bipartisan improvements to our health care system that improve health outcomes and lower health care costs for all Americans.”
“Highmark’s proposed rate increase reflects the fact that the federal government could cut funding for the ACA by discontinuing cost-sharing reduction subsidies,” says Delaware Insurance Commissioner Trinidad Navarro. “Cost-sharing reduction subsidies are passed on to insurers to assist lower-income individuals and families. In addition, it is unclear whether the ACA individual mandate will be enforced next year. If the Federal Government fails to live up to its obligations under the law, insurers will likely continue to exit the Marketplace.”
Individuals and families using Marketplace insurance are often self-employed or are nearing retirement age and/or have exhausted COBRA coverage from their former employer.
About 27,000 Delawareans have health insurance through the Marketplace and will be affected by increasing rates and/or insurer withdrawals. The proposed rate increase will not apply to Delawareans on Medicaid or those with group or individual policies outside of the Marketplace.
“Without competition from other companies and with the Affordable Care Act’s fate left up to members of the federal government who appear to oppose it, we are in a difficult position. My job is to pursue premium fairness and increased competition. I will continue to work with Senators Carper and Coons and Congresswoman Blunt-Rochester’s offices to fight for the best interests of the people of Delaware,” added Navarro, a Democrat.
