It looks like it will cost more to purchase health insurance coverage in Washington State next year.
Health insurance companies that sell individual policies in Washington want to increase their rates by an average of 13.5% in 2017. Insurance Commissioner Mike Kreidler says the increases are larger than last year's requested rates.
“They’re significantly higher than what we had last year: we were around five or six percent, weighted increase average, and it was even lower than that in the first year. So insurers are getting better information than before from experience, and as a result of that you see some fluctuation. And maybe they should have been higher than that in past years.”
He notes, however, that people who can't afford the higher rates will also benefit from an increase in government subsidies. “In the case where they receive a subsidy, it would hold them harmless, so to speak, for going with the increase in the subsidies.”
The subsidies are based on the average price of what are called the “Silver” insurance plans offered through the state’s health benefit exchange.
Last year saw more price increases in the Bronze range of plans, while at the same time, subsidies went down. Kriedler says some consumers are discovering it may be better to pay for a Silver plan.
“They understand there are some down sides. Jut paying a low premium might not be the best approach for them. They should be looking at a lower cost charge but paying more, so we are seeing fewer people gravitate to those Bronze plans as we had in the past.”
At the same time, there are many lower income people who can only afford to pay for the Bronze plans.
