Florida Insurers Request 17.8% Rate Hike On Obamacare Exchanges
Six companies filed to sell health insurance in Florida next year on the Obamacare exchanges with an average rate increase of 17.8 percent, state officials said.
However, if the state approves the rate increase, it would likely be offset by an increase in federal subsidies. That means consumers wouldn’t have to pay much more for their premiums.
The subsidies that would reduce next year’s premiums are included in a Senate proposal to replace Obamacare. In the plan, which Republicans hope to bring to the Senate floor for a vote next week, the subsidies would be replaced with smaller tax credits after 2019.
Also included in the Senate proposal is federal money for insurers that would reduce costs for poor people who don't get Medicaid.
Health insurer Florida Blue has said without that federal money, called cost sharing reductions, insurance rates would increase by another 20 percent.
The companies requesting to sell insurance in Florida this year are Florida Blue, Celtic Insurance Company, Florida Health Care Plan, Health First Commercial Plans, Health Options and Molina Healthcare.
Last year, 11 companies requested to sell insurance on the 2017 exchanges and they were granted a rate increase of 19 percent. Federal subsidies largely offset those rate increases.
Last year, 11 companies requested to sell insurance on the 2017 exchanges and their proposed rate increase averaged 17.7 percent. Federal subsidies also increased though, meaning consumers didn't have to pay much more for their premiums.