The Kentucky Health Cooperative, the largest insurer on Kynect, Kentucky’s Obamacare health insurance exchange, proposed a 25.1 percent health insurance premium rate increase for 2016.
http://news.heartland.org/newspaper-art ... mium-hikes
Despite the daunting numbers, Kentucky Gov. Steve Beshear (D) is unconcerned about the double-digit rate in his administration’s signature policy.
“System-wide averages don’t give a good picture of what an individual’s out-of-pocket costs may be,” Beshear said.
Beshear bypassed the legislature and created Kynect, the nation’s first state-run health-insurance exchange, through an executive order.
“The rates for private health plans on Kynect have been filed but have not yet been approved or certified, so we don’t yet know what the final numbers will be,” Beshear said. “Changes still may occur, and rates should be finalized sometime in mid-July, but we do expect that some plan rates will go down, some will go up, and some will stay close to the same as last year.”
Financial Problems Loom
In May, Standard and Poor’s (S&P’s) reported Kynect is in serious financial trouble, especially because no federal bailout money will be provided after 2016, when Obamacare’s risk corridor program ends.
S&P’s report indicates the Kentucky Health Cooperative booked an amount of risk corridor receivables, which is money from a risk pool paid out in varying degrees to insurers who collected significantly less in premiums than the cost of providing benefits, equal to 117 percent of its capital. Kentucky had the second highest number of risk corridor receivables in the nation in 2014.
Rate Hikes Will Vary
Beshear says rate changes will impact enrollees differently depending on their region, age, household income, and smoking status, and he argues the average numbers don’t specify how much those rate fluctuations may affect individual policyholders.
Despite Beshear’s assurances, all enrollees will pay significantly higher premiums in 2016.
BlueCross BlueShield of Tennessee’s 36.3 percent average premium rate increase will result in increased premiums ranging from 19.5 percent to 59.5 percent. The top end of premium increases in New Mexico, where exchange market leader Health Care Service Corp. is asking for an average hike of 51.6 percent, would be even steeper.
The current 25 percent increase sought by the Kentucky Health Cooperative would mean the cooperative will have increased rates by 45 percent in Kynect’s first two years of existence.
Heartland's bias is well known, but the news isn't good-- because of it's (poor) health stats, Kentucky is probably the most important state in the nation to go all in on Obamacare, especially since they've got above average retention ratios:
Moar on why Kentucky is so important.