Based upon early returns of health exchange insurance trends in 15 states, premium increases requested by the dominant exchange carriers are well within historical, pre-health care reform parameters.
An analysis released by Avalere Health identified the top carriers in the 15 states for which current data is available. It also reviewed premium increase requests in those states, and found that the leaders — WellPoint and independent Blue Cross Blue Shield plans — proposed modest increases when compared to previous hikes by these carriers.
WellPoint and the Blues dominated to such a degree that only a few reported a significant market share in those states. Kaiser, Centene, Coventry and Lifewise were among those who even made the radar in percent of policies sold.
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"The Blues and WellPoint approached the exchange market aggressively in 2014, participating in nearly all states where they currently have a presence in the individual market," said Dan Mendelson, CEO of Avalere Health. "However, new entrants and pricing strategies in this consumer-driven market threaten to shake things up in 2015, particularly for new enrollees."
WellPoint is the enrollment leader in California, Colorado, Connecticut, Indiana and Virginia, while Blues plans ranked first in the District of Columbia, Florida, Maryland, Michigan, Rhode Island, Vermont and Washington. CO-OPs have sizeable share in Maine and New York, with Moda prevailing in Oregon and Premera, Centene, Lifewise and Group Health splitting the major share of Washington covered lives.
Avalere said nine of the leaders sought rate increases of 9 percent or more for the 2015 plan year.
"The premium increases proposed by the dominant exchange carriers are consistent with historical growth," Avalere reported. "Indeed, according to the Commonwealth Fund, premiums in the individual market grew 10 percent or more per year prior to the launch of health insurance exchanges. In 2010, the average rate increase was nearly 12 percent, ranging from 3 percent in Idaho to almost 22 percent in Nebraska."
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
