The Department of Commerce and Consumer Affairs Insurance Division recently released the final decisions for 2018 Affordable Care Act (ACA) individual plan health insurance rates. These rates are expected to affect approximately 34,000 individuals in Hawaiʻi currently purchasing ACA individual plans.
2018 ACA Individual Health Rate Filings:
Company
Proposed
Average Rate Change
Final Approved
Average Rate Change
HMSA
27.1%
19.78%
Kaiser
25.2%
24.1%
“Increasing utilization of medical services by a segment of the individual market and the immense uncertainty on the national front regarding the ACA has impacted rates,” Insurance Commissioner Gordon Ito said. “The discontinuation of Cost Sharing Reduction (CSR) funding and unpredictability over the non-enforcement of the Individual Mandate resulted in rates increasing on average of 10% to 14%. However, Advanced Premium Tax Credits can help to lower your monthly payment.”
Click to read the full clarification
“It is worth the time to shop and compare plans across the various offerings,” Ito continued. “This year, a Gold plan could be more affordable than a Silver plan. Bronze plans can be as affordable as $5-10 per month depending on your age and income. It’s best to take into consideration more than just monthly premium rates, but also the deductible amounts and out-of-pocket maximums to determine the right plan for your insurance needs.”
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The Insurance Division’s approval of rates was made pursuant to the statutory requirement that rates cannot be excessive, inadequate or unfairly discriminatory. All submitted data regarding the rates is closely reviewed by rate and policy analysts and actuaries.
“With the rising costs of the healthcare delivery system, rates must also be set at adequate levels to prevent insolvency and keep competition in the market,” said Ito. “Inadequate rates could result in an insurer failing to meet statutory solvency requirements which would jeopardize policyholders and providers under their plans.”
Consumers are encouraged to review and understand the offered ACA plans during open enrollment at HealthCare.gov. With the halt of CSR funding, this year’s plan options have become increasingly complex. Further clarification on the issues related to the Open Enrollment period of the ACA Individual Market are available here.
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