JUNEAU — The lone insurance company expected to offer individual health policies to Alaskans next year will have until mid-July to make its requests for rate changes.
Alaska Division of Insurance Director Lori Wing-Heier said initial rate filings had been expected in early May. But Moda Health’s announcement this month that it will not be participating in the individual market in 2017 complicated matters because it would leave Premera Blue Cross Blue Shield as the only company in that market, barring any further changes.
At the division’s request, Moda provided the information it would have included in its rate filing. With Moda’s agreement, the division shared that with Premera, she said. Premera will incorporate Moda’s data into its rate filings to ensure the filings are sufficient for the risk the company will be assuming as the only insurer in the individual marketplace, Wing-Heier said.
Filings are due July 15 but Wing-Heier said she wouldn’t be surprised to see a filing from Premera within the next three weeks or so. State regulators have until Aug. 23 to approve rates for 2017.
High claim costs and a relatively small market have been ongoing concerns in Alaska. The state approved average rate increases of close to 40 percent each for Moda and Premera for 2016. That was on top of double-digit rate increases for 2015.
The average rate increase approved for Premera for this year was 38.7 percent. Premera spokeswoman Melanie Coon said Wednesday that the company is looking at a similar figure, “if not more” for next year.
Coon said that’s why it’s important for there to be progress on state efforts to stabilize rates.
“We’re hoping that something can be done,” she said. “We’re trying to make it work and pushing any lever that we can.”
Coon said Premera has been encouraged by what it’s seen from legislators and Gov. Bill Walker.
State officials acknowledge the current situation is not sustainable and have proposed reviving a high-risk pool to handle claims for the costliest conditions. The idea is to spread the cost of those claims across all insured markets, rather than have them borne by just the smaller individual market.
Legislation on that issue is pending in the special session that began Monday.
