Delaware Insurance Commissioner Karen Weldin Stewart has okayed big rate hikes of as much as 32.5 percent in the individual insurance market.
Weldin Stewart recommended approval of a 32.5 percent average rate increase in the individual market for Highmark Blue Cross Blue Shield of Delaware. The approved average rate increase for the small group market for Highmark’s plans is 2.74 percent.
The individual market is a small piece of the health insurance coverage universe. However, the rates do affect many individuals who operate small businesses or professional practices have taken early retirement and do not have coverage through their former employer.
The sharp rate increases were in the news when former President Bill Clinton, while campaigning for wife Hillary Clinton criticized the costs of coverage for small businesspeople and described the situation as “crazy.”
Hillary Clinton is urging changes in the Affordable Care Act, while opponent Donald Trump vows to “repeal and replace” the legislation.
Aetna Life Insurance Co. received an average of 22.8 percent increase in the individual market and Aetna Health Insurance Company received an average increase of 23.6 percent. In the small group market, Aetna Life received an average increase of 15.2 percent and Aetna Health received an average increase of 19.7 percent.
The commissioner submitted the rates to the Centers for Medicare & Medicaid Services in August. CMS then conducted a final review of the Aetna Health and Aetna Life requests and concurred with the Commissioner’s recommendations.
The Aetna Health rate reflects mere a 1.4 percent reduction of the insurer’s individual rate request made in June, and Aetna Life’s rate is a 1.1 percent reduction of its June request. In the small group market, Aetna Health’s rate reflects a 3.5 percent reduction of the original request, and Aetna Life’s rate is 3.4 percent less than requested.
According to Weldin Stewart originally reduced rates requested by Highmark BCBSD and submitted them to CMS. However, CMS urged Delaware and neighboring states to reconsider their submissions and accept Highmark’s original rates as filed.
Several BCBS entities have left, threatened to leave, or reduced coverage in other states’ marketplaces for 2017. Aetna recently announced they are leaving the ACA exchanges in eleven different states, but will remain in Delaware for 2017.
Weldin Stewart will not be around to deal with the issue next year, since she lost her bid for the post in the Democratic primary.
Given the current environment, the commissioner agreed with CMS’s analysis and approved the original rates requested by Highmark.
The approved rates are average rates; some consumers may pay more, some less. Under Delaware law, the commissioner evaluates the reasonableness of rates to ensure they are not excessive, inadequate or unfairly discriminatory.
