Innovative State Reinsurance Program Has Helped Drive Premiums Down By More Than 30% Over Three Years
The MIA has approved the following premium changes in the small group market:
For the individual market, the three-year premium decrease is 37.6% for more than half of the market (64%) in the highest-enrollment HMO plan. Dental premiums for the Individual market affecting nearly 60,000 members were filed requesting an average 0.2% increase. Approved dental premium were for a 3.7% decrease. Compared to the premiums originally filed on 5/1/20, the approvals represent annual premium reductions for the Individual, Small Group, and dental markets of $91 million, $46 million, and $1 million respectively, for a total of $138 million. Three attached exhibits provide detail and context to the outcome of 2021 ACA premiums. Exhibit one. Exhibit two. Exhibit three.
As in the previous two years under the 1332 waiver, lower unsubsidized rates will result in lower “Advance Premium Tax Credit” (APTC) subsidies, and the post-APTC premium for some subsidized members could see significant increases depending on age/income/plan. This is particularly true in Charles, Frederick, Kent, Talbot, Washington, and Wicomico counties, where the second lowest cost silver plan upon which the APTC is benchmarked will shift from a CareFirst BluePreferred PPO plan to a UnitedHealthcare, Optimum Choice, HMO plan.
Ultimately, none of the ACA rate filings included a factor for a net expected change in costs in 2021 due to COVID-19.
Lastly, as of September 14, the extended COVID-19 “special open enrollment” (SEP) for 2020, which will run through December 15th has enrolled 23,533 members into the “Individual Non-Medigap,” ACA market and 47,929 into Medicaid for a total of 71,462. (Included in the 71,462 figure are 4,020 from the newly introduced “Maryland Easy Enrollment Health Insurance Program” where interest in health insurance coverage can be indicated on a tax form.)
For more information about the Maryland Insurance Administration's rate review process please refer to the FAQ guide on the Health Insurance Rates and Review Process page.
200 St. Paul Place, Suite 2700, Baltimore, MD 21202
410-468-2000 | 1-800-492-6116 (toll free) | 1-800-735-2258 (TTY)