Maryland’s Obamacare insurers have dramatically slashed proposed rates for 2019 after the state took action to prop up the law’s insurance marketplace, from an average 30 percent increase to a nearly 14 percent decline.
Maryland’s new proposed rates, which the state must still finalize, were disclosed during a public hearing on Monday. The state got federal approval to create a reinsurance program and passed a law to help stabilize the individual market, which includes Obamacare’s insurance marketplaces.
With reinsurance, the state covers the highest medical claims from Obamacare insurers, thus creating an incentive to lower premiums overall.
The state also passed a law that charged insurers a tax in order to fund the reinsurance program.
All of the state’s four Obamacare insurers lowered rates compared to their initial request earlier this year.
CareFirst BlueChoice lowered their rate request from an 18.5 percent increase to a 22 percent decline. Kaiser Permanente plans also had asked for a hike of 37 percent and now asked for a decline of 6.3 percent.
Some plans are still calling for rate hikes but at substantially lower rates.
For instance, CareFirst BlueCross BlueShield had called for a rate hike of 91 percent for one plan but is only now calling for a 17 percent hike.
Maryland is the latest state to see lower Obamacare rates for 2019 due to reinsurance.
For instance, Minnesota Obamacare insurers requested rate declines of 3 to 12 percent. Minnesota also got federal approval for a reinsurance program last year.
Some states are also dealing with higher rate requests for the 2019 coverage year. Last week Washington state approved a rate hike of nearly 14 percent.
