North Carolina’s largest health insurer announced Friday that it won’t be seeking its previously requested 25 percent rate increase for Obamacare customers next year. Instead, it wants nearly 35 percent.
Blue Cross Blue Shield of North Carolina said Thursday the higher rate was caused by increased costs from Obamacare. It is the latest salvo in an ongoing battle over whether Obamacare is making healthcare more affordable or more expensive.
The insurer provided its initial rate request in May based on claims data through the end of March. But since then the company received claims data from April and May and concluded healthcare costs will be much higher than expected.
“Our claims and expenses are higher than our premiums and we need to take steps now to protect the sustainability of plans for our customers over the long term,” said Patrick Getzen, vice president and chief actuary for the insurer.
The proposed premium hike affects only Obamacare customers and must be approved by regulators.
However, such a boost plays a part in the ongoing debate over Obamacare’s affordability.
The healthcare law requires insurers to disclose proposed rate increases of 10 percent or more for Obamacare customers in 2016.
Opponents of the healthcare law pounced on high estimates from insurers that sought increases in some states of up to 70 percent.
Supporters counter that the rates still need to be finalized and will assuredly be negotiated down.
A Kaiser Family Foundation analysis of eight states estimated that the rate increase for Obamacare’s silver plans would be fairly modest. Covered California, the state-run Obamacare exchange, announced last week that plans would increase in 2016 by 4 percent.
