Premiums continue to rise for plans on the Obamacare exchanges, while more localities will have fewer plan options, according to an Avalere analysis of data. Seven states — Connecticut, Maryland, Maine, New York, Oregon, Vermont, and Virginia — and the District of Columbia have submitted early rate filings.
Related: ACA limbo leaves insurers wondering
Proposed 2018 exchange premiums for the most popular type of exchange plan (silver) are 18 percent higher, on average, compared to last year, while premiums for the lowest cost silver plan will rise 11 percent, on average, and premiums for the second lowest cost silver plan will rise 12 percent, on average.
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Likely contributors to premium growth in 2018 include the uncertainty surrounding the future of the Affordable Care Act and cost sharing reductions, as well as inadequate risk-mitigation programs, lower-than-expected exchange enrollment, and declining plan participation, Avalere experts write.
"In addition to the cost of premiums, insurer decisions around whether or not to offer plans in the exchanges will impact shoppers," writes Caroline Pearson, senior vice president at Avalere. "Consumers will see fewer choices on the exchange again in 2018, with some counties at risk of having no options."
Currently 47 mostly rural counties have no participating issuer on the exchange, but several issuers have indicated they would expand, though they haven't yet committed to specific localities. Some of those counties may be covered by new entrants and other counties could be left uncovered if plans withdrawal from additional markets. If any counties remain without a plan option when open enrollment begins, residents would not have access to subsidized coverage.
In addition, 41 percent of counties could see only one insurer offering plans, up from 33 percent in 2017. Further, only 27 percent of counties are expected to have three or more issuers, down from 64 percent in 2016.
The initial filing deadline for states using HealthCare.gov is today, June 21.
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
