Major health insurers have first full year of ACA cost experience data to use in setting their 2016 rates. Looks like some (but not all) regions are in for quite a sticker shock. For 6 states reporting so far, prelim proposed rate increases ave 18+% with some over 30%. Of course, these rates are only proposed but are likely much closer to final rates this time around. Unlike past years, 2016 rates will be based on actual HC cost experience and not estimates as in past years. State regulators will have a tough time enforcing rates lower than the actual cost of care delivery. (How could any HI carrier (profit, non-profit, or COOP) stay in a region where their product is basically guaranteed to lose $$?) This could be a big $$$ hit for non-subsidized ERs in these regions, as well as big hit to Fed budget due to big increased ACA subsidies
Yahoo!
Obamacare sticker shock: Insurers propose rate hikes for 2016 - Jun. 2, 2015
Another factor behind some of these HI increases may be carriers adjusting to 2016 phase out of industry subsidy of "Temporary Risk Corridors".
Explaining Health Care Reform: Risk Adjustment, Reinsurance, and Risk Corridors | The Henry J. Kaiser Family Foundation
Will be interesting to see how this plays out across the US as more states report in.
Yahoo!
Obamacare sticker shock: Insurers propose rate hikes for 2016 - Jun. 2, 2015
Another factor behind some of these HI increases may be carriers adjusting to 2016 phase out of industry subsidy of "Temporary Risk Corridors".
Explaining Health Care Reform: Risk Adjustment, Reinsurance, and Risk Corridors | The Henry J. Kaiser Family Foundation
Will be interesting to see how this plays out across the US as more states report in.