Obamacare Rates to Drop Sharply in Virginia Next Year Obamacare Rates in Virginia Set to Drop Next Year – InsuranceNewsNet

RICHMOND – The cost of individual health insurance is expected to fall sharply next year in Virginiacompanies offering double-digit percentage drops in their latest filings with the Crown Corporations Commission.

While most Virginians are covered by large employer group plans — typically regulated by the federal Employees Retirement Income Security Act (ERISA) — more than 313,600 Virginians purchase these individual Care Act policies. affordable.

The discounts will bring the average monthly rate per person into richmond area up to anywhere from $524.26 billed by the largest scheme, Anthem Blue Cross Blue Shield statewide guardians of healthafter a proposed average reduction of 10.5%, at $438.21 for Cigna Health and Life Insurance Co. after a drop of 19.6%.

A Northern Virginiasingle plan, Group Hospitalization, with just over 800 customers, offers a $1,116.04 average monthly rate, a reduction of 24.3%.

These are gross rates, before taking into account the subsidies the Affordable Care Act provides for people living in households with an income four times the poverty line. The subsidy is greatest for those closest to the poverty line and decreases as incomes rise.

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The Crown Corporations Commission Insurance office has yet to review them and determine if they are fair to people buying insurance and will generate enough money for insurers’ reserves to pay claims.

Last year, the Bureau overruled, and in some cases reversed, proposed rates filed by nearly all insurers.

“It’s good news that rates are coming down,” said Doug Grayexecutive director of the Virginia Health Plans Associationa professional association for health insurers.

He said it reflected the launch of from Virginia reinsurance program for individual and small business Obamacare plans, as well as Congress’ decision to extend the duration of federal Obamacare grants through the new Inflation Reduction Act. The reinsurance program covers insurers when claims in a single case exceed a predefined amount.

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“They gave some certainty to the plans,” Gray said.

The reinsurance program draws on federal Medicaid funds and from Virginia general fund – the pool into which state tax revenues flow – to fund the program.

The idea is to intervene in the most expensive cases, Del said. Mark the sicklesD-Fairfaxwho sponsored the idea.

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“That means insurers can know their worst-case scenario and price accordingly,” Sickles said. He added that the costliest cases are also the most difficult for insurers to predict, even when covering as many people as the 140,000 in guardians of healththe largest plan in the state.

The reinsurance program “has allowed us and all other carriers to reduce premiums for individual plans through the exchange next year,” said Dale Gauding, spokesperson for Sentara Healthwho offers the Optima Health Plan, covering more than 35,000 Virginians. Optima offers a reduction of 20.9% of its average premium.

“Reinsurance reduces the financial risk for carriers by covering a portion of high cost claims, allowing for lower rates,” he said.

Denise T. Wardspokesperson for Blue Cross Blue Shield Anthemsaid, “Our record reflects our experience and ability to deliver on behalf of consumers in this market.”

Sen. Tim KaineD-Virginia.talking to Richmond Times-Dispatch drafting committee last week said expanding subsidies for Affordable Care Act coverage will be one of the most important parts of the Cut Inflation Act to ease pressure from the rising prices on family budgets.

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