ACA premiums allowed to increase for next year, a new supplier has been added to the market
Premiums for health insurance plans under the Affordable Care Act will increase by about 6% on average next year, but the Maryland Insurance Administration said this week that savings opportunities it is still there.
Fees rose slightly last year, with an increase of about 4%. However, Marylanders will continue to have some of the cheapest market rates in the country in 2025, the insurance system said in a news release on Thursday.
A new insurance company – Wellpoint Maryland – has also been approved by the insurance system to sell 10 plans on and off the Affordable Care Act market, bringing the total number of carriers to five. Regardless of where Marylanders live in the state, they will have a choice of at least four insurance carriers for next year, the release said.
The premiums received by the insurance system are less than 0.5% on average than what was requested by the insurance carriers, saving the citizens of the state an estimated $ 6.4 million in upfront costs, the system said.
Next year’s rate increase was driven by a general increase in the cost of claims, according to the insurance administration, which is charged with regulating the state’s $42 billion insurance industry. On average, prescription drug costs rose 10.2%, physician costs rose 8.5% and hospital costs rose 4.3%.
In Maryland, federal and state subsidies that encourage younger and healthier residents to buy insurance help keep costs down for everyone, the insurance system said. About 80% of people who buy their marketplace plan from Maryland Health Connection — the state’s health insurance exchange — receive some reduction in up-front costs through federal tax credits.
The government’s reinsurance program — a fund through which insurers are reimbursed for a portion of the costs from patients who need the most expensive care — also helps stabilize the market and keep rates low, the administration said. it said. Accepted rates for 2025 are 17% lower than they were in 2018, before the program began. The withdrawal of the government from the US Centers for Medicare and Medicaid, which allows the reinsurance program to exist, has been approved until 2028.
“The success of the Reinsurance program continues to be evident,” said Maryland Insurance Commissioner Joy Hatchette in a release Thursday. “Maryland’s rates will continue to be among the lowest and most affordable in the nation.”
About 271,000 Marylanders will be affected by the premiums next year, though the total cost and whether the extra fees vary between plans.
For example, a 40-year-old living in the Baltimore metro area could pay anywhere from $41 a month for a silver plan that’s less expensive than what he paid last year — if he’s covered by CareFirst PPO plan – or $40 less. if covered by Optimum Choice. Costs for a silver HMO plan from CareFirst, the No. 1 option.
In a news release Thursday, Hatchette advised Marylanders to work closely with health insurance officials and advisors when reviewing plans to make sure they are taking advantage of any opportunities to cover the cost of their premiums. .
The insurance administration also approved a 0.3% rate increase for dental plans in the individual market, where about 96,000 Marylanders buy insurance.
About 227,000 Marylanders are enrolled in small group marketing plans, intended for businesses with 50 or fewer employees. Fees for these projects will increase by an average of 4.5%. More than 225 projects will be offered in the small group market this year.
Originally published:
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