High Rates are Coming
Insurers Warn of Higher Rates
Insurers have been preparing to raise their premiums yet again, however, this year because of anticipated rise in the uninsured rate, inflation, and overall decline of our economy. We are expecting to see rates rise $888 per year. This is an estimate from the Kaiser Foundation.
In the District of Columbia and 7 states with early rate-filing deadlines - Maine, Maryland, Michigan, Oregon, Rhode Island, Vermont, and Washington - average prop
osed rate increases for marketplace coverage in 2023 are “considerably higher than they have been in the last couple of years,” Sabrina Corlette, co-director of the Center on Health Insurance Reforms at Georgetown University’s McCourt School of Public Policy, said in a recent blog.
Let's face the facts, if one state or one carrier raises the overall premiums, all others will follow. The true fact is that insurance is a profitable business. "BUSINESS" meaning it only exists to make PROFIT!
In DC, for example, early marketplace rate filings show BlueCross and Blue Shield proposed an average rate increase of 29.3% fo
r next year, while Kaiser Permanente has proposed a 17% boost in premiums.
In Maryland, the popular Blue Cross Blue Shield, is proposing a 25.9% average rate jump next year, compared with 7.2% for Kaiser.
Michigan, Physician’s Health Plan has proposed a 12.9% increase.
The proposed increases are mainly due to growing cost inflation for hospital and physician services and prescription drugs, along with increased utilization of medical services in 2021, and through the first quarter of 2022 among some carriers. Folks are finally getting out to see their doctors. Covid changed lives for the entire world. The healthiest of us put off getting annual physicals and maintaining good health checkups.
I have personally heard in the field that getting routine checkups scheduled takes 4-8 weeks. This means insurance companies, more than likely, saw a decline in preventative care the past 2 years.
But this year into the following year 2023 they will have more claims being paid towards preventative care.
To "make up for the deficit" premiums will be raised.