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Final Rates Confirm Delawareans’ Insurance Is Getting Even More Expensive

By August 22, 2018No Comments

Washington, D.C. – Today, Delaware announced final rates for 2019 individual-market health insurance plans, which indicate a 3 percent premium increase, in contrast to the average nationwide 4.3 percent decrease that Brookings Institution analysts predicted would occur absent GOP sabotage, on top of last year’s 25 percent rate hike due to Washington Republicans’ repeal-and-sabotage agenda. Brad Woodhouse, executive director of Protect Our Care, released the following statement in response:

“For the past year and a half, President Trump and his Republican allies in Congress have engaged in a deliberate, aggressive campaign to undermine health care and families in Delaware are once again forced to pay the price. Until we stop Republicans’ war on health care, insurance companies will continue to make huge profits and enjoy record tax breaks from Republicans while they charge working families more and more. Washington Republicans should start working on bipartisan solutions to make coverage more affordable, instead of helping their friends in the insurance industry make another buck on the backs of hardworking Delawareans.”

From the Insurance Company:

Highmark: GOP Mandate Repeal And Short-Term Junk Plans Contributing To Rising Rates. “The rate development in this filing is based on certain assumptions we have had to make… We have assumed that the ACA health insurance coverage mandate is eliminated…. We have included an assumed [load] for expected adverse selection due to the Short Term limited Durational Insurance market expansion.” [Highmark, accessed 8/22]

Highmark: GOP Mandate Repeal Harmed Insurance Market, Leading To Higher Rates. “We applied [an adjustment] to reflect the anticipated changes in the average morbidity of the covered population… The morbidity factor was [increased] to reflect the market uncertainty from the elimination of the health insurance coverage mandate.” [Highmark, accessed 8/22]

From the Experts:

Brookings Analysis Estimates That Individual Market Premiums Would Decrease If Not For GOP Sabotage. Among its key findings:

  • Estimates That Average Premium Would Fall By 4.3 Percent In 2019 In Stable Policy Environment. “I estimate that the nationwide average per member per month premium in the individual market would fall by 4.3 percent in 2019 in a stable policy environment.” [Brookings Institution, 8/1/18]
  • Insurance Companies’ Revenues Will Far Exceed Their Costs In 2018. “I project that insurers’ revenues in the ACA-compliant individual market will far exceed their costs in 2018, generating a positive underwriting margin of 10.5 percent of premium revenue. This is up from a modest positive margin of 1.2 percent of premium revenue in 2017 and contrasts sharply with the substantial losses insurers incurred in the ACA-compliant market in 2014, 2015, and 2016. The estimated 2018 margin also far exceeds insurers’ margins in the pre-ACA individual market. ” [Brookings Institution, 8/1/18]
  • Absent Republican Sabotage, Average Premiums For ACA-Compliant Plans Would Likely Fall In 2019. “In this analysis, I define a stable policy environment as one in which the federal policies toward the individual market in effect for 2018 remain in effect for 3 2019. Notably, this scenario assumes that the individual mandate remains in effect for 2019, but also assumes that policies implemented prior to 2018, like the end of CSR payments, remain in effect as well. Under those circumstances, insurers’ costs would rise only moderately in 2019, primarily reflecting normal growth in medical costs.” [Brookings Institution, 8/1/18]