$1B in Premium Rate Increases Rejected in Rate Reviews
She added that the results of premium increase rate reviews indicate that the health insurance market is now "working for consumers the way markets are supposed to work. Insurers are being forced to offer more competitive prices."
The rate reviews assess whether proposed increases in health insurance premiums are based on reasonable estimates of the next year's cost of providing services to enrollees and accurately reflect changes in medical expenses and healthcare utilization.
Of the double-digit increases reviewed, 36% were found to be reasonable, 26% were rejected, 12% were withdrawn, and 26% were modified to meet requirements.
The largest savings were recorded in California ($34.6 million), New York ($20.2 million), and Michigan ($15.5 million). According to the report, the implemented rate increases were reduced on average by 2.8 percentage points.
Officials declined to attribute any of the premium costs savings to either a slowing down of demand or increased competition among health insurers.
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