Tennessee: APPROVED avg. 2020 #ACA premiums: 1.1% DECREASE; 3 carriers expanding coverage
Last month I reported on Tennessee's preliminary 2020 premium rate filings. At the time, the weighted average rate change for ACA Individual Market policies was a 1.1% reduction over this year.
Today, the Tennessee Insurance Dept. officially approved the rate changes exactly as is, without making any changes one way or the other:
TDCI Approves Carriers’ 2020 Rates on the Federally Facilitated Marketplace
More Choices, Rate Decrease Highlight Rating Filing Season
The Tennessee Department of Commerce and Insurance (TDCI) announces the approval of insurance rates requested by the five carriers offering coverage on the Federally Facilitated Marketplace (FFM) in 2020.
“The approved rate filing requests for 2020 benefit Tennessee’s working families by offering them an increased number of coverage choices and a tighter range of prices,” said TDCI Interim Commissioner Carter Lawrence. “Three of the five insurance carriers are expanding their coverage areas. Additionally, the Department has approved premium rate decreases from market participants for just the second time in the ACA marketplace era. The increased insurance choices and lower prices perfectly fit Governor Lee’s campaign promise to help support Tennessee families when it comes to more insurance choices and reduced costs.”
The carriers and rates sought on the FFM for 2020 are as follows:
- BlueCross BlueShield of Tennessee. Statewide coverage includes adding the Memphis and Nashville areas. Proposed 2020 rate request seeking an average increase of 1.4%.
- Bright Health. Continuing coverage in Knoxville, Memphis and Nashville areas. Proposed 2020 rate request seeking an average increase of 2.93%.
- Celtic/Ambetter Insurance. Coverage expansion into Nashville and Knoxville areas with continuing coverage in Chattanooga and Memphis areas. Proposed 2020 rate request seeks an average decrease of 1.6%.
- Cigna. Proposed coverage expansion into Chattanooga and Jackson with continuing coverage in Knoxville, Nashville, Memphis, and Tri-Cities. Proposed 2020 rate request seeking a premium decrease of 5.7%.
- Oscar Health. Coverage continues in Nashville and Memphis. Proposed 2020 request seeking an average decrease of 8.3%.
Though decreases bring down premium prices in rating areas with more competition, an individual’s out-of-pocket premium costs depend on several factors, including the amount of federal funding for premium assistance (subsidies) available in the state. Consumers should contact licensed insurance agents or company representatives in considering 2020 plan coverage.
The Centers for Medicare and Medicaid Services (CMS) must now review Tennessee’s approvals. Companies have until Sept. 24, 2019 to sign final agreements with CMS to participate in the 2020 marketplace.
Open Enrollment for 2020 begins Nov. 1, 2019 and lasts through Dec. 15, 2019.
The press release doesn't say anything about approved rates for Tennessee's small group market, but here's the requested rate changes there: