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Insurers Cut Rate Requests on ACA Plans

After years of significant rate increases, insurers across a number of states are seeking smaller rate increases for their Affordable Care Act (ACA) plans.
August 7, 2018

After years of significant rate increases, insurers across a number of states are seeking smaller rate increases for their Affordable Care Act (ACA) plans, and some are even seeking rate reductions, according to data published by the U.S. Department of Health and Human Services (HHS). Preliminary rate requests published by HHS reveal that major insurers in states, including Mississippi and Florida, seek single-digit increases, while those in Texas, Illinois, Arizona, and North Carolina have proposed premium reductions for 2019.

Louisiana Insurance Commissioner Jim Donelon said rates for individual health insurance plans and small group plans will be about six percent lower in 2019. He said it is the first time in five years that rates in the individual market have decreased, and “it follows 50 percent increases over the last two years and it's not just in our state. ... There seems to be a stability coming to the health market and that's really, really, good news.”

The generally more-limited proposed rate increases reflect the improved financial situation of many insurers’ ACA business.

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