Obama Administration Is Downplaying Impact of Large Rate Hikes, Lack of Subsidies Faced by Millions of Individual Enrollees, AIS Newsletter Finds

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An informal survey conducted by The AIS Report on Blue Cross and Blue Shield Plans finds that almost half of the individual health insurance market will not get a federal subsidy for coverage.

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About 40% of the individual insurance market doesn’t receive federal premium subsidies and will need to absorb the full cost of the substantial rate hikes that are expected for the 2017 plan year, according to an exclusive survey of Blue Cross Blue Shield plans, conducted by The AIS Report on Blue Cross and Blue Shield Plans, the results of which appear in the September 2016 issue. Published independently by AIS, The AIS Report is not affiliated with or sponsored, endorsed or approved by the Blue Cross Blue Shield Association or any of the independent Blue Cross and Blue Shield companies.

The Obama administration recently played down expected double-digit rate increases by explaining that most people who buy coverage through an insurance exchange will be insulated from soaring premium costs. But Blues plans say a substantial part of their non-group business buys coverage outside of the exchanges. Moreover, about 15% of people who buy coverage through an exchange don’t qualify for a subsidy.

“Every time I hear the administration or Obamacare supporters say 83% or 85% of those purchasing on the exchange are getting a subsidy, it is just terribly disingenuous,” industry consultant Robert Laszewski tells The AIS Report. “The middle class is getting killed by these already high premiums and deductibles...and they will take the full hit from these new increases.”

Visit http://aishealth.com/archive/nblu0916-02 to read the article in its entirety, which also includes details on the exchange and non-exchange enrollment in the non-group market among several Blues plans across the United States.

About The AIS Report on Blue Cross and Blue Shield Plans
The AIS Report on Blue Cross and Blue Shield Plans delivers timely news and insightful analysis of new products, market share, strategies, conversions, financing, profitability and strategic alliances of Blue Cross and Blue Shield plans, which are major players in every U.S. health insurance market. The monthly newsletter is designed for plan managers and others who consider BCBS plans to be partners or competitors. Visit http://aishealth.com/marketplace/ais-report-blue-cross-and-blue-shield-plans for more information. A thoroughly objective publication, The AIS Report is published independently by AIS and is not affiliated with or sponsored, endorsed or approved by the Blue Cross and Blue Shield Association or any of the independent Blue Cross and Blue Shield companies.

About AIS
Atlantic Information Services, Inc. (AIS) is a publishing and information company that has been serving the health care industry for nearly 30 years. It develops highly targeted news, data and strategic information for managers in hospitals and health systems, health insurance companies, medical group practices, purchasers of health insurance, pharmaceutical companies and other health care organizations. AIS products include print and electronic newsletters, databases, websites, looseleafs, strategic reports, directories, webinars, virtual conferences and training programs. Learn more at http://AISHealth.com.

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Jill Brown, Executive Editor
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