Huge increases requested on Obamacare for 2016

In an article in insurance Business America, they report huge increases on the way for Obamacare – both individual and group plans.  Alot of the increases can be attributed to the fact that insurers now -especially the smaller companies- have accurate data on claims and utilization patterns under Obamacares rules.  Remember, It was only 17 months ago that the sick and uninsured were guaranteed coverage, and insurers basically had to “guess” at what claims would really be.

“Health insurance companies participating in Affordable Care Act exchanges are requesting sizable premium increases of up to 60% for the 2016 open enrollment season, signaling that utilization costs from newly enrolled individuals continue to rise.

According to a report from the Wall Street Journal, larger insurers are asking for smaller rate increases – about 10% or less – while smaller insurers are looking to secure approval for higher increases.

Requests also vary by state. According to various insurance departments, average premium spikes range from 85% in Georgia, 60% in Florida to 25% in Oregon. Tennessee’s top insurer, BlueCross BlueShield of Tennessee, wants to raise premiums by 36.3% while CareFirst is hopping to secure a 20.4% average spike.”