Florida Health Insurance Providers Propose Rate Increases for 2016

Florida Health Insurance Providers Propose Rate Increases for 2016

Health insurance providers that provide healthcare plans to Florida residents through the federal healthcare marketplace, healthcare.gov, is want to increase rates in 2016. These rates increases are in the double digits. This rate increase could be costly for Florida residents.

Why Do They Want an Increase?

Florida health insurance providers state that one of the main reasons for the requested increase is that more Florida residents are using their insurance. These providers are seeing an increase in doctor visits and filling prescriptions.  According to a recent Gallup Poll, 9 out of 10 Americans are covered by healthcare. Even with the uninsured rate higher in Florida (at about 22%) than the national average, over a million people in Florida signed up for health insurance coverage through healthcare.gov in 2015.

In addition to more insurance users, United Healthcare of Florida also claims that healthcare providers are charging more. To cover these costs, Florida health insurance providers want to place the burden of those costs on the citizens of Florida who use Obamacare.

Finally, other experts see another reason for the rate increases. These experts believed that the health insurance companies proposed an original rate for Obamacare that was lower than the actual value of the insurance to lure in buyers. Once the companies had a stable client base from the marketplace, one being https://floridainsurancequotes.net/health-insurance-quote/ they began to introduce rate increases banking on individuals not wanting to change coverage, despite the rate increases.

How Much of an Increase?

Florida health insurance providers are only required to report a request of 10% or more. That being said, United is requesting an increase of 18% along with Coventry. Aetna is looking for an increase of 21%. Cigna currently has the lowest reported request at 12%.

What Happens Next?

Florida insurance regulators have the power to reject the rate increase requests. More often, lower rate increases are negotiated. Overall, Obamacare providers increased rates about 5.4% on average last year. Final rate increase figures are not released until August. Open enrollment for healthcare.gov begins in November. This gives users a couple of months to shop around for the best price.

What Does This Mean for Floridians?

While over a million Floridians receive federal subsidies for health insurance coverage purchased through healthcare.gov, these individuals may still see an increase in health insurance premiums. Government subsidies only cover so much. If the rate increases are steep enough, the subsidies will not cover enough of the premium so those receiving the subsidies will have to pay more out of pocket.

Rate Increases Spark Debate

These rate increases are sparking debate over the ACA all over the country. Opponents of Obamacare argue that the flooding of the insurance marketplace is creating a healthcare backlash. Patient interests groups are arguing that Obamacare is not all that it’s touted to be. Whether it’s Obamacare opponents or patient advocates, the sentiment stands that Obamacare isn’t working.

Rate Increases Not Good for Florida Residents

If Florida health insurance providers get the raise increases that they’re wanting, this won’t work out well for Florida residents who use healthcare.gov. Now that affordable healthcare is within their grasp, Florida health insurance providers want to yank it back up out of reach. It should be a good thing that over a million Florida residents are now receiving healthcare that was once unavailable to them, instead of being a reason for complaint. If these proposed rate increases are allowed, then over a million Floridians will probably have to pay more for health insurance, and the vision of providing affordable healthcare will only be a dream.