Independence Blue Cross Requests "On and Off Exchange" Individual Plan Average Rate Increase of 14.9% for 1/ 1/2015
August 29, 2014
“Independence Blue Cross Family of Companies, including KHPE and QCC, has submitted a rate filing requesting a 14.9% average increase, effective January 1, 2015, for their Individual Affordable Care Act (ACA) compliant-products. The requested rates do not reflect the financial assistance that 70% of our members in ACA-compliant plans currently receive. Members using federal premium tax-credits will pay lower premiums than the rates requested in this filing.”
From the Pennsylvania Insurance Department website:
When health insurance companies ask for rate increases, they submit income and expense data including claims handling expenses, corporate overhead and payments of claims to providers. The companies are allowed to project the rate increases they'll need to cover future payments, but they can't increase premiums to make up for past losses.
Before the department will approve rate increases, insurance companies must demonstrate that the frequency and severity of their claims rose and that next year's claims are projected to grow larger. Actuaries review the premium increase proposals to ensure they're not "excessive, inadequate or unfairly discriminatory" -- that is the standard in law. Many times, the department will disapprove a company’s initial filings and the company has to resubmit them or come back with modifications.
If you would like to comment on any of the pending submissions listed above, please send your comments via email to: email@example.com. Please include the Tracking # INAC-129626643 INAC-129626130 listed in the 'Subject' field of your email.
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