Regulators cut proposed insurance rate hikes

In June, the U.S. Supreme Court decided the fate of the premium tax credit under the Affordable Care Act.

Many states, including New York, have some form of prior approval, under which state regulators must grant final premium increases each year.

“After suffering two years of financial losses when the state significantly reduced premium requests, the rates requested by plans for 2016 are necessary to ensure plans remain viable”, he said in a statement.

The state Department of Financial Services, which determines the rates, said Friday it has agreed to the 7.1 percent increase for health plans starting January 1, a rate which is slightly below the national increase of 8 percent.

In the individual market, Excellus received approval for a 5.72 percent increase-7.08 percentage points less than its 12.8 percent request.

Nationally, the average insurance rate will rise 8 percent. This year 87 percent of ACA enrollees qualified for subsidies, which averaged $263 a person for the year in the states with federally-run exchanges. “The actions of the department bear ongoing scrutiny as we monitor the financial stability of plans in the marketplace”. Health Republic had requested increases of 14.36 and 20 percent.

MVP requested a 13.5 percent increase; 10.2 percent was approved. And United, which sought a 22-percent increase, was granted an increase of just 1.65 percent from past year.

State insurance regulators once again slashed the rate hikes sought by New York’s health insurers, cutting requested prices for individuals and small businesses by more than 30 percent – and saving customers more than $430 million.

New York operates its own exchange, but also has one of the biggest fields of different insurers of any state. However, Texas has so far refused to extend its Medicaid program to that segment of the population notwithstanding the provision under ACA that major share of the cost will be borne by the federal government for those who become newly eligible.

Income earners in New York with 400% of the federal poverty level – that is, $47,080 for individuals and $97,000 for a family of four, are qualified for the state’s health exchange.