Individual health insurance companies in Washington state have filed for rate increases averaging 13.5% on Monday; on the other hand, several other insurers have withdrawn or have announced their intent to exit the market.
The state insurance commissioner’s office is in charge of reviewing the proposed rate increases, to be implemented in 2017 once approved. Historically, the office has typically set the final rates lower than those proposed by insurers.
State insurance commissioner Mike Kreidler believes that the two-digit rate hikes are signs that the individual insurance market still has room for growth.
"I see it as kind of the reflection of the shake-down cruise of this competitive marketplace," he remarked. "They probably are rate increases that should have happened when they first got started."
Kreidler expects individual insurance rates to continue to adjust up and down over the next few years.
The insurance commissioner urged those consumers who cannot keep up with the higher rates to purchase coverage through the state exchange—Washington Healthplanfinder—to benefit from increased government subsidies.
Thirteen insurance companies are set to offer individual plans in Washington next year, reported KOMO News. Six will sell their plans exclusively through the state exchange, while four will offer theirs outside. Three will sell their plans both on and off the exchange.
Not all insurers in the region are looking to stay.
Following Moda’s exit from the individual market in January, United Healthcare of Washington recently announced its withdrawal effective next year. Two other companies, Premera and Lifewise, have elected to offer their plans only through the exchange.
