Oklahoma: Approved avg. 2021 #ACA premiums: OK DOI insists indy market rates are +2.7% in spite of this being mathematically impossible
A month ago the Oklahoma Insurance Department posted the preliminary 2021 individual & small group market rate filings, including the following press release:
Oklahoma Consumers to Have More Health Options for 2021 ACA Plans
OKLAHOMA CITY – Insurance Commissioner Glen Mulready announced today the 2021 preliminary rate filings for health insurance plans under the Affordable Care Act (ACA). Insurers that currently offer coverage through the Oklahoma Marketplace filed plans requesting average statewide increases of 2.7 percent.
The same three insurers that offered individual health plans on the 2020 Exchange will return for 2021 — Blue Cross Shield of Oklahoma (BCBSOK) , Bright Health and Medica Insurance Company. In addition, Oscar Health, UnitedHealthCare (UHC) and CommunityCare Oklahoma (CCOK) will join the marketplace in Oklahoma for 2021 allowing consumers to have more choices. BCBSOK and Medica offer statewide plans while Bright Health, CCOK, Oscar and UHC serve limited areas of the state.
...Rate filings for 2021 health insurance plans were approved by the Centers for Medicare and Medicaid Services (CMS) and are posted here. Final approved rates will be made public in September.
If you have questions about other insurance issues, contact the Oklahoma Insurance Department at 1-800-522-0071 or visit our website at www.oid.ok.gov.
Since then, the approved/final rates have also been posted, with only a few changes that I can see (Medica was increased a few percentage points from a 5.3% reduction).
There's only one problem: The press release specifically states that the average statewide rate change on the individual market for 2021 is +2.7%...but the individual carrier rate changes range from -24.4% to +1.4% (or +1.8% for the preliminary filings).
It's mathematically impossible for the overall average to be any higher than +1.4% even if that carrier has 100% fo the marketshare...which isn't the case anyway.
I'm not sure how OK DOI came up with +2.7%, but that's what they're saying the deal is: