Medical Billing Companies India

Health Exchange Premium Rate

Insurance providers in the United States recently filed their proposed health plan exchange rates for the next year to state and Federal regulators. Where most of the proposed bids show a ‘relatively modest’ increase in the premium, reports say that there might be a great hike in some markets.

Experts say that they saw this coming a long time ago. According to some, the main reason for the increase in health exchange plans revolves around the end of the ACA reinsurance and risk-corridor programs. While the rising healthcare costs also play a great part in that, the growing trend of historically adverse patients mix in health exchanges (younger and healthier people joining plans to balance the costs of older and sicker consumers) is also a reason for the rise in premiums.

Although the insurance companies have submitted their bids citing these concerns, the state and Federal authorities have not yet commented on the matter. In addition, the HHS would be reviewing the bids that propose a hike of 10% or higher. Only after that, the regulatory bodies would approve or disapprove the proposals.

Medical Billing Consultants

Premium Rate Proposals

A look at the proposals shows that the bids are higher in areas with weak competition, and lower in regions with more competitors. The percentage of increase in the rates not only varies from state to state, but also differs from provider to provider. Experts believe that the variation in the proposed premium hike is an attempt by the insurers to compensate themselves for the financial challenges and reach a level of constant profit.

The final health plan premium rates are expected to be confirmed by November, and would be put up on the Healthcare.gov website. However, the first insights on the insurance markets of 2017 show that the rates would be higher on average next year than what was put up for 2016. That would be because the ACA is still in act now, and provides healthcare subsidies of up to 400% to patients.

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