BCBSNC just announced their request for a rate increase for 2018. It’s not approved, but it shows how Obamacare is effecting the marketplace.
Three things are mentioned as the major reasons for the rate increase.
- The CSR (cost sharing reductions) are in addition to the subsidies that the heavily subsidized, lower income, individuals get. They lower deductibles, maximum out of pocket limits, and co-payments. For example, on the lowest income scale, a $ 5,000 deductible is reduced to $ 500. Maximum out of pocket limits go down from $ 7,150 to $ 800. Their is no payment sent for these reductions to the insurance companies, so they spread that cost to ALL insureds. That one of the many reasons premiums, deductibles, and out of pocket limits for everyone else are so high.
- A federal tax that added on to all plans
- Medical inflation costs