Health Insurers Are Pushing Premium Hikes For Huge Profits

Health insurance companies are asking state regulators to approve eye-popping rate increases nationwide — reaching 66 percent for some policies.

By Veronica Riccobene and Helen Santoro, The Lever

The six largest health insurers reported more than $1 trillion in revenue and more than $31 billion in net income last year — and are now pushing to raise Americans’ premiums by as much as 66 percent for some policies, according to recent state regulatory filings. The proposed increases come as insurers dole out billions to further enrich top brass and shareholders through stock buybacks and dividends.

In all, Affordable Care Act (ACA) marketplaces across the country are projected to see the largest rate hikes in more than five years, driving up out-of-pocket premiums for individual plan policyholders by more than 75 percent on average, according to data compiled by the Kaiser Family Foundation. More than 21 million Americans who don’t have employer-sponsored health insurance rely on the ACA marketplace for coverage.

Many health insurers point to rising costs associated with President Donald Trump’s global tariffs and expiring federal premium tax credits, which they claim will significantly threaten their ability to remain competitive.

State insurance regulators have the power to reject requests for “excessive” health insurance premium increases in the marketplace.

Meanwhile, as claim denials, prescription drug prices, and out-of-pocket spending rise, a startling number of Americans say it is difficult to afford their health care bills, while more than half of those with health insurance say at least 10 percent of their monthly spending goes toward health care alone.

The Lever previously reported that the industry’s top earners have raked in more than $371 billion in profits since the ACA’s passage.

According to health insurers, rates are rising largely because an expanded federal tax credit for individuals and families who might otherwise not be able to afford insurance through the ACA marketplace is set to expire at the end of the year (unless Republican leaders in Congress intervene). This credit reduced health insurance premiums for more than 22 million people this year, or 92 percent of all ACA policyholders, and without it, insurers argue that they can’t afford to cover the bill — instead passing on increased costs to consumers.