INTERVIEW: 2018 health insurance rates set to dramatically spike

 

 

 

 

 

 

 

 

Photo Courtesy: Parker Insurance

 

David Parker is a local insurance agent based out of Rexburg, Idaho. He spoke with Neal Larson on KID Newsradio about the recent release of proposed 2018 insurance rates by the Idaho Department of Insurance for the Idaho Health Exchange (YourHealthIdaho) which suggests rate hikes as high as 81 percent for some plans. Parker explains why the rates are spiking and what insurance recipients can expect. 

Listen to the full interview below:

 

 

 

BOISE, Idaho — Proposed health insurance rates for the 2018 fiscal year suggest steep rate hikes.

The Idaho Department of Insurance released the proposed rates for plans on the Idaho exchange program, some plans are expected to go up by as much as 50 percent.

Photo Courtesy: Idaho Department of Insurance

“78 percent of people buy the silver plan because they qualify for what’s called an out-of-pocket cost share or a cost share reduction,” David Parker, a local insurance agent, told KID Newsradio. “That is the piece that Congress never funded in the Affordable Care Act to do, but the Obama administration continued to pay that.”

Out-of-pocket share or cost share reduction lowers deductibles based on how much a person falls below the federal government’s standard of poverty. During the Obama administration, the federal government paid for those cost share reductions, President Donald Trump has said he does not want the federal government paying for those.

Parker says the proposed 2018 rates reflect health insurance companies adjusting their rates as if the statements by President Trump would be honored, hiking rates as much as 81 percent for some silver plans, the plan purchased by the majority of Idahoans.

He also added families who receive a subsidy for their insurance only pay a percentage of their income and probably will not see the rates spike as much for their plans.

The proposed rates can be adjusted by insurance companies until September.

Nationwide, the state of Idaho offers more health insurance opportunities than many other states. A county by county analysis of insurance companies participating in state health insurance exchange programs, revealed the Idaho exchange program offers three or more carriers throughout the entire state while neighbor state Wyoming only offers one throughout the state.

Photo Courtesy: Idaho Department of Insurance