Losses, rising health care costs drive higher 2017 premium requests

(Harrisburg) — Health insurance companies have proposed rate hikes as high as 48 percent for plans on the Obamacare exchange.

Highmark and Geisinger asked for the biggest increases – anywhere from 38 to 48 percent, depending on the plan.

Yes, 38 to 48 percent.

They point to the usual suspect – rising health care costs, but also additional newer challenges.

Two federal programs meant to help out insurers, as part of the Affordable Care Act, are set to expire this year.

And some insurers guessed wrong, set premiums too low, and lost tens of millions of dollars last year.

Speaking on WITF’s Smart Talk, state Insurance Commissioner Teresa Miller says the Congressional Budget Office predicted this day would come.

“The CBO was probably right and insurance companies weren’t and now they’ve gotta bring those premiums back up to where they probably should’ve been to cover all the costs of providing the coverage,” says Miller.

“I think if you look at some of these companies, they’ve actually lost significant amounts of money in this business. I think it’s really hard for people to believe that, frankly. And I’m sure there are people out there right now who just say I just flat out don’t believe it.”

Highmark says it lost more than $240 million in the health insurance business last year, UPMC $26 million, and Geisinger $24 million.

Miller’s office still needs to review the rate increases and decide what she will approve.

A final decision is due in October.