Rate Increases – the New Norm?
Across the U.S., insurers have filed their 2017 rate requests. Many people are asking, “Why are healthcare premiums for individual plans on the rise?” As noted in previous alerts, there are many factors that go into calculating rates, including the amount of services used, as detailed in this recent article from The Motley Fool.
Since the start of the Affordable Care Act (ACA), those with insurance are using more services than premiums cover. Although insurance companies nationwide expected an influx of people who would require additional care, the volume far exceeded expectations. In addition, fewer younger, healthier individuals enrolled than anticipated to counter these costs. In 2014, consumers used $2.5 billion more in services than premiums covered, according to ModernHealthcare. In the last two years, Blue Cross Blue Shield of Arizona (BCBSAZ) has lost more than $185 million offering plans associated with the ACA.
Information from Blue Cross/Blue Shield of Arizona