Does Obamacare permit rate increases after 2014?
A common question we hear in our customer care center is, "Does the Affordable Care Act permit rate increases after 2014?" Yes. But for most people, the process of receiving a rate increase is likely to change. This is how the process typically works today: One, each state is allowed to set its own minimum premium increase that requires a review by regulators. Two, if the rate increase is below the state's minimum, there is no review. Three, the state's minimum is based on its unique premium trends, health care, cost trends and other factors. This process should not change if you buy your plan off of an exchange. Starting in 2014, any plan sold on an exchange will be regulated by the exchange and whether you buy that plan on or off the exchange, the new process for rate reviews will work like this: One, exchanges will use claims data and other information to evaluate the rate increases. Two, exchanges will use an analysis of that data to determine if a premium increase is excessive or unjustified. After 2014, for any plan regulated by the exchange, rate increases will occur once per year in January. All rate increases will be reported and those that are 10% or higher will be subject to automatic review.
