- As states release them, HHS is posting proposed 2017 plan rate filings for the ACA insurance exchanges on www.ratereview.healthcare.gov, searchable by state and insurance carrier.
- Premiums for many 2017 ACA insurance plans are expected to increase significantly this year.
WHY ARE PREMIUMS INCREASING?
- Medical Cost Trends: Health spending is expected to grow faster in 2017 than in recent years.a. Driven by increasing utilization, hospital and physician prices, and prescription drug costs.
- Sunset of Reinsurance Program: The gradual reduction in the ACA’s reinsurance program, which expires at the end of 2016, is expected to increase premiums by 4 to 7 percent.
- Risk Pool Adjustments: As insurers acquire greater information, they continue to revise premiums to account for enrollee risk pools that are likely sicker and costlier than initially expected.
- Lower Enrollment: Approximately 12.7 million enrollees were confirmed as of March 11, 2016, down from the 21 million originally projected by the Congressional Budget Office.a. The 12.7 million signups represent an estimated 46 percent of the “potential market” for the insurance exchanges.
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