Maryland: Preliminary avg. 2025 #ACA rate changes: +6.7%

via the Maryland Insurance Dept:

Health Carriers Propose Affordable Care Act Premium Rates for 2025 New carrier files to enter individual market statewide

BALTIMORE – The Maryland Insurance Administration has received the 2025 proposed premium rates for Affordable Care Act products offered by health and dental carriers in the individual, non-Medigap and small group markets, which impact approximately 496,000 Marylanders. This includes rate submissions from Wellpoint Maryland Inc., an HMO that will begin offering Affordable Care Act products in Maryland for the first time.

In the individual, non-Medigap market, carriers are requesting an overall average rate change of 6.7%, with the average request by carrier ranging from 4.7% to 14.2%. In the small group market, carriers have requested an overall average rate increase of 6.1%, with the averages by carrier ranging from 4.9% to 23%. In the individual, non-Medigap, stand-alone dental market, carriers have requested an overall average rate increase of 2.4% with averages by carrier ranging from –5% to 18.2%.

The carriers’ requested increases are reviewed by the Maryland Insurance Administration and rates must be approved by the Commissioner before they can go into effect. Before approval, all filings undergo a comprehensive review of the carriers’ analyses and assumptions. By law, the Commissioner must disapprove or modify any proposed premium rates that are unfairly discriminatory or appear to be excessive or inadequate in relationship to the benefits offered. The MIA will hold a public hearing on the ACA proposed rates in July and expects to issue decisions in September 2024.

In both the individual and small group markets, the overall average increase requested for 2025 is consistent with the overall average claims trend. The rates submitted by the carriers for the Individual market include the estimated impacts from the state’s innovative, state-based reinsurance program, which was originally approved for 2019-2023 and has been extended through the end of 2028. The State Reinsurance Program resulted in a 32% reduction in individual market rates in the first three years and has been instrumental in keeping rate increases at or below trend. Even if this year’s requested increases were approved as proposed, the individual, non-Medigap rates would be 16% below the rates being charged in 2018 prior to the start of the State Reinsurance Program.

In addition to rate change filings, the Wellpoint filing identifies new plans that the company will be offering in the Maryland individual market in 2025. Wellpoint is the third carrier to re-enter the individual market since 2021, and its products will be available statewide. This brings the total number of carriers in the market to five and will ensure that Marylanders in all counties will have a choice of at least four carriers.

“We are pleased to have yet another carrier selling in the individual market. The state was down to two carriers before the state reinsurance program was implemented,” noted Insurance Commissioner Kathleen A. Birrane. “The addition of three new carriers demonstrates the continuing success of the program, will provide consumers with an expanded number of choices, and will provide additional competitive pressure to keep rate increases low. Maryland has some of the lowest unsubsidized rates for comprehensive medical coverage in the nation and we want to keep it that way.”

The Insurance Administration will hold a quasi-legislative virtual public hearing on this matter on July 9, 2024 from 1 p.m. to 4 p.m. (See public hearing details below.)

“Feedback from all stakeholders is very important and we urge everyone to participate in the public hearing,” Commissioner Birrane said. “Health insurance costs impact everyone, and we want to give all Marylanders the opportunity to be heard as we consider the proposed rates.”