TALLAHASSEE, Fla. – Today, the Office of Insurance Regulation announced the submission of proposed rates for 2018 Federal Patient Protection & Affordable Care Act (PPACA) health insurance plans. Rates for individual major medical plans which comply with the coverage requirements of PPACA may increase an average of 44.7% beginning on January 1, 2018. The majority of this increase – 31 percentage points – is directly attributable to Silver plans offered on the Exchange. Most consumers with the Silver plans will not see an out-of-pocket change, as the federal premium subsidy will also increase to absorb this extra cost. In fact, as noted in the documents linked below, a family of four earning $53,000, as well as an individual earning $27,000, may see a slight decrease in their out-of-pocket health insurance premium in 2018. Consumers enrolled in a Silver on-Exchange plan that do not receive a premium subsidy will have the option of purchasing a similar off-Exchange Silver plan without this extra cost. Plans other than the on-Exchange Silver plans will increase an average of 18%. In 2013, an unsubsidized plan comparable to an existing Silver plan would cost a family of four an average of $7,200. In 2018, the average unsubsidized cost for the same family totals $17,000.
While 2017 data is not yet available, federal reimbursements of cost-sharing reductions or payments directly to insurers totaled $1.3 billion in 2016, and premium subsidies received by Florida consumers enrolled in on-Exchange plans totaled $4.7 billion.
For more information, see the documents provided below:
- Individual PPACA Market Monthly Premiums for Plan Year 2017
- Family of Four and Single Individual Scenario Examples Showing the Average Estimated 2017 vs. 2018 Health Insurance Premiums by Florida County for the Individual Market (using the selection of a Silver plan and including federal premium subsidies to illustrate overall premium costs):
- Family of Four With an Income of $53,000 Enrolled in an Average Silver Plan
- Family of Four With an Income of $53,000 Enrolled in the 2nd Lowest Silver Plan
- Single Individual With an Income of $27,000 Enrolled in an Average Silver Plan
- Single Individual With an Income of $27,000 Enrolled in the 2nd Lowest Silver Plan
Per federal guidelines, a total of nine health insurance companies submitted rate filings for the Office’s review in June. There were 14 participating companies in 2017, 19 participating companies in 2016, and 21 participating companies in 2015. In 2018, Florida will have 42 counties that are served by only one carrier.
The rate filings consisted of individual major medical plans to be sold both on and off the Exchange. Federal review of the rate filing information has not been finalized by the Department of Health & Human Services and is subject to change. Further information can be obtained from each insurance company, the Federal Government website, the Office’s I-File Forms & Rates Filing Search System, and the Office’s Federal Health Care Insurance Reform webpage.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation has primary responsibility for regulation, compliance and enforcement of statutes related to the business of insurance and the monitoring of industry markets. For more information about the Office, please visit www.floir.com or follow us on Twitter @FLOIR_comm and Facebook.