With a year of claims under their belt since the onset of Obamacare, health insurers are proposing to raise rates by as much as 70 percent in 2016.
“This is the first time that insurers have access to a full year of claims under the [Affordable Care Act] in order to project premiums,” said analysts at the Kaiser Family Foundation on Monday.
From the Washington Examiner:
“Insurers have sold plans in the law’s new insurance marketplaces for two years in a row. But the difference in 2016 is that for the first time, they have a full year of claims data from enrollees that tells them how high or low to set the price tag.”
Thanks to ACA requirements, insurers were required to announce proposed rate hikes on Monday. While insurers are allowed by law to raise rates each year, significant rate hikes must be announced ahead of time.
With the absence of cost-saving, catastrophic plans, an aging U.S. population, and the ACA’s preexisting conditions legislation, the public will likely be in for a sticker shock come 2016.