As the U.S. Congress continues its effort to repeal and replace the Affordable Care Act, the largest insurer in the Mid-Atlantic region is seeking double-digit premium increases in Maryland, Virginia, and Washington, D.C.
CareFirst Blue Cross Blue Shield is projecting that the company will have lost $600 million total since joining the ACA marketplaces four years ago, largely because sicker people are staying in the insurance pool while healthier people are dropping out. This has consistently driven up premium rates, which in turns causes more healthy people to drop out. As a result, the insurer is requesting a 50 percent rate increase in Maryland.
Meanwhile, three other insurers are also requesting double-digit rate hikes ranging from 18 to 37 percent. These rate requests are due over the next two months and will be reviewed by officials with the Maryland Insurance Commission before negotiations or approval. However, there is a possibility the rate hike requests could go higher because the current numbers filed with the Insurance Commission are based on assumptions that federal cost-sharing payments will be made. Lawmakers in Washington have not committed to making these payments in 2018, and if they don’t, premiums could spike another 10 to 15 percent.
