We’ll see average increases that are going to be higher than the last four years - Custer noted
Medical coverage is on the rise, with double digit premium increases, expected for states like Georgia in 2016. Family and individual health insurance rates in Georgia, will be affected as recently reported, that Ralph Hudgens – a Georgia Insurance Commissioner, had approved between 27 – 29% interest rates hike for individual policy holders (Alliant Health Plans), and a slight reduction in some medical insurance plans.
A careful analysis of medical coverage by experts, like Bill Custer from Georgia State University, has shown increases for personal health insurance in the regular insurance market or personal exchange, to be in double digits. He feels that, medical insurance consumers should wait, see, before shopping around for medical coverage, because of these variations.
We’ll see average increases that are going to be higher than the last four years – Custer noted.
The cost of medical coverage is rising between 8-10%.
The health insurance companies had cited, the health status of consumers, increased usage of health services and increase in medical costs (including drugs prescription), as the reasons for medical coverage rise.
Custer also noted as a general rule, that the health of Georgia population, is declining.
Wall Street Journal, recently stated that other states within the country, are experiencing similar rise in medical coverage premiums. Most of the sort-out premiums by the biggest health plans, have been approved by regulators, for November. Moderate rise in medical coverage is expected in some states.
The report by the journal, shows medical insurance companies attributing earlier steep losses, to increased cost of doing business. Also some programs to checkmate high risks enrollees by the insurers, are ending, the American Academy of Actuaries noted.
Blue shield and Blue Cross, after Georgia actuarial review lowered their rate proposal of one plan, from 12% to 8.6%, while the rate increase of another plan is cut from 3.1% to 0.2%, said Laura Wright – an agency spokeswoman. Also, the hike of one plan from UnitedHealthcare, was cut from 18.6% to 13.2%.
The majority of these rates were actuarial accurate and data driven. Said Graham Thompson – Executive director Georgia Association of Health Plans.
He further stated that they had just one year experience in the business, when the Georgia medical insurers filled for rate hike in the spring.
Georgians for a Healthy Future, Cindy Zeldin said that “it’s also important that better information be made available to them on provider networks so that consumers know what they are getting”. When shopping for medical coverage, it’s important you know the hospitals and doctors in the provider networks.
Medical coverage form nine insurance companies will be available to Georgians, next year. Harken Health has joined, while Time Insurance was dropped.