New #ObamaCare Rate Hikes On the Way — Insurers Seek Massive Increases!

Hey, it's working just as critics said it would!

At WSJ, "More Health-Care Insurers Seek Big Premium Increases":

WASHINGTON—The Obama administration published more information Monday about hefty premium increases for 2016 sought by large insurers selling plans under the health law.

Major carriers from around the country are proposing big increases in the premium rates paid by consumers who buy insurance policies on their own.

Blue Cross and Blue Shield of Illinois is looking to raise rates by averages of 29% or more. In Pennsylvania, Highmark Health Insurance Co. is asking for 30%, according to proposals submitted by insurers for the year ahead. Around the country, some of the main market leaders are looking for double digit increases.

The new requests for premiums come at a time when the political and legal future of the law hangs in the balance. The Supreme Court is set to issue a decision later this month on the validity of the law’s tax credits to offset the cost of premiums for lower-income consumers in most states in the country.

Republicans opposed to the health law still plan to make it part of their 2016 election campaign, and for the law’s Democratic supporters, the proposed rate increases mean a tough conversation about how the law is working.

Some of the significant increases being sought were first reported in The Wall Street Journal.

As part of the 2010 Affordable Care Act, insurers must justify increases of 10% or more to the Obama administration, which published those explanations online Monday. The administration cannot force insurers to reduce rates, but many state regulators can negotiate with health plans, and the rates could come down.

The Obama administration sought to emphasize that point on Monday.

“The rate review process kicks off an important set of steps designed to provide consumers and others the opportunity to weigh in on proposed rate increases of 10% or more,” said Andy Slavitt, acting administrator of the Centers for Medicare and Medicaid Services, which oversees the health law’s implementation. “These specific rates will be subject to vigorous rate review and revision.”

Some of the insurers couldn’t immediately be reached for comment following the Department of Health and Human Services’ publication of the data Monday.

But Greg Thompson, a spokesman for the Illinois insurer, said rate proposals reflected the health plan’s medical claims, and noted provisions in the health law that require insurers to spend the vast majority of premium income on claims or refund the difference to consumers.

Other insurers also have said their rates for the year ahead reflect the impact of the law’s sweeping changes to the way health insurance is sold and priced.

Under the health law, plans have to sell coverage to everyone, regardless of their medical history, and can’t charge people who are more seriously ill higher rates. Health-plan officials say that means they are bearing bigger medical claims than they had expected.

Moreover, insurers have said they face substantial pent-up demand for health-care services from the newly enrolled, including for expensive drugs.

Consumer groups contend they want state and federal regulators to be as tough as they can on insurers’ requests to raise rates...

More.