With Health Insurers Seeking Higher Premium Rates Federal Officials will Review Effective Rate

With Health Insurers Seeking Higher Premium Rates Federal Officials will Review

Obama administration has for years urged the state insurance regulators to use tools suggested by Affordable Care Act to keep the health care premiums low. But, now several of the big insurers propose a big double digit increase as they say they have lost huge amount of money on several policies sold to individuals as well as families under the Affordable Care Act.

It's time to see if the federal officials practice what they preach as they are responsible for reviewing the suggested rates for increase. In states like Missouri, Texas, Oklahoma and Wyoming the federal government is in charge of reviewing the proposed rates. In forty six states the Federal officials do not exactly agree to the insurance commissioners deem to have "effective rate review" programs.

With the presidential elections coming closer, the reviews make kind of a political challenge as they will affect millions of voters. Blue Cross and Blue Shield in Texas are requesting close to sixty 60 percent rate increase for 2017, where as in Oklahoma, Blue Cross and Blue Shield propose an increase of an average 49 percent. Humana in Missouri is looking for a 34 percent increase. It is not every year that the carriers request such huge leaps in premiums.

A certain amount of pressure also comes from the timing as November 1 is when the next open enrollment period starts. It will be prior to November 8 Election Day when insurers will be notifying the increase to consumers.

Region: