Pennsylvania officials announced that premiums for Obamacare plans will increase by a modest 4.9 percent on average in 2019, bucking double-digit increases that have been reported in other states.
The officials released the news Tuesday but not specific rate filings by insurers. They credited the tempered increases to how they allowed insurers to raise rates only on certain plans after President Trump ended payments known as cost-sharing reduction subsidies. They also credited an outreach effort by Democratic Gov. Tom Wolf’s administration, after the Trump administration reduced its own funding in that area.
Because of how the state structured its plans, many customers ended up paying less — or even nothing — for coverage, which the state advertised heavily to consumers.
Most states implemented similar methods for their plan structures. Other states, however, have announced that preliminary rates are in the double digits, including Washington state, Maryland, Virginia, and New York.
Those states attributed the increases to the Trump administration planning to offer plans that don’t abide by Obamacare’s mandates, and to Republicans repealing Obamacare’s fine for going uninsured, which they believe will cause more people to disenroll from the exchanges and leave sicker customers behind, raising rates for those left.
The Pennsylvania customers, who don’t get medical coverage through a job or government program, and have to buy it on their own, also are expected to have more options in 2019. The health insurers that are running programs this year are planning to remain. Current filings show that 31 of Pennsylvania’s 67 counties will have more health insurers offering coverage, and the number of counties with only one health insurer will drop from 20 to eight.
The filings are initial proposals, and how much customers pay for coverage will depend on their age, where they live, whether they smoke and whether their income is low enough to qualify for federal subsidies that make health insurance less expensive to them.
“The modest rate requests and increased competition are further indications that the Affordable Care Act is working in Pennsylvania,” said Jessica Altman, the state’s insurance commissioner, referring to the formal name for Obamacare.
