If the predictions of insurance executives are any indication, then America’s individual health insurance market is in for a bumpy ride in the months to come.
In an interview with Morning Consult, America’s Health Insurance Plans (AHIP) president and CEO Marilyn Tavenner suggests that due to market shifts and rising health care costs, health insurance rates are likely to increase in the coming year.
“I’ve been asked, what are the premiums going to look like?” the former Center for Medicare and Medicaid Services head said. I don’t know because it also varies by state, market, even within markets. But I think the overall trend is going to be higher than we saw previous years. That’s my big prediction.”
Tavenner’s predictions highly suggest that an increase in premiums among plans offered through the Affordable Care Act (ACA) is in the cards. Indeed, some of the changes she hinted at have begun to manifest—although she did not mention deductibles, an article on thefiscaltimes.com observed that some states experienced a 76% jump in their deductibles in 2016.
Tavenner enumerated several factors that could affect premium prices next year:
- The constant and general rise of medical costs in the country
- Surging prescription drug prices
- Market forces and limitations imposed by the ACA could force insurers to raise their premiums
- Two federal “risk mitigation” programs created under the ACA are set to expire in 2017, their loss will make it harder for insurers to pay for inadequate risk coverage
AHIP director of communications Clare Krusing said that health insurance companies are well aware of the above factors, and will likely keep them in mind when determining rates for next year and deciding whether to participate.
“Plans are just beginning to file their rates, and it’s a long process with state and federal regulators, until those are approved,” Krusing remarked. “Certainly plans are going to evaluate market conditions and regulatory approvals, and that will all impact their participation overall [in the ACA].”
