With the exception of just one, all individual health insurance companies in Oregon have proposed rate increases for 2017 that hit double-digit percentages.
Additionally, seven small group health insurers out of the state’s 12 also have plans for rate hikes, but in smaller increments than the individual market.
"When we did our analysis of the 2015 financial results, we saw that Oregon's seven largest insurers lost $171 million," said Oregon Insurance Division spokesperson Jake Sunderland. "That's not an ideal situation."
It is the second straight year of considerable rate increases since the Affordable Care Act (ACA) was implemented, reported The Oregonian. It was suggested that due to their inability to legally reject customers due to pre-existing conditions under the ACA, health insurers in the region have turned to raising their rates.
Moda Health Plans and Providence Health Plans, two of the largest insurers in the regions, are looking to raise their rates significantly by a third. The former proposed a 32.3% increase, while the latter is asking for 29.6%. Oregon’s Health Co-op is also looking to hike its rates by as much, proposing a 32% increase.
Other significant increases include Kaiser, suggesting a 14.5% hike, and Regence Blue Cross Blue Shield of Oregon with 17.9%.
Health Net Health Plan of Oregon stood out from the rest, proposing to leave its rates relatively unchanged for next year. The insurer was recently acquired by Centene Corp.
U.S. Department of Health & Human Services press secretary Jonathan Gold detailed that for approximately 71% of consumers in Oregon, the higher insurance rates will be balanced by ACA-created tax credits.
Insurers submitted their rate requests to the Department of Consumer and Business Services, Division of Financial Regulation on May 2. The division is tasked with reviewing and approving the rates before they can be levied on policyholders.
"For the next two months, we will analyze the requested rates to ensure they adequately cover costs without being too high or too low," remarked Insurance Commissioner Laura Cali. "Our open process allows Oregonians to see everything we do and provide comments on the filings that affect them."
