3 reasons insurers will likely request higher rates in 2016

BCBSA exec says payers face "unrealistic pressures" to keep costs down

Expect health plans to request higher rates in 2016. That was the message Kim Holland, director for state affairs with the Blue Cross and Blue Shield Association, delivered at a conference on Affordable Care Act insurance exchanges, according to Bloomberg.

Holland cited three reasons that insurers continue to incur higher costs even as they add members as a result of ACA enrollment and Medicaid expansion.

Insurers were due to submit their 2016 rates by Friday, May 15. However, the Supreme Court won't issue a verdict in the King v. Burwell case until June, so insurers such as Aetna are submitting tentative rates to state regulators, with the understanding that they may need to revisit them after the Supreme Court decision. One analysis has suggested that a ruling that strikes down subsidies on Healthcare.gov will cause rates to spike as much as 47 percent in 2016.

For more:
- read the Bloomberg post

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