State Health Insurers Allowed To Increase Rates After CSR Repeal
After last Friday’s announcement that Cost Sharing Reductions were removed from the Affordable Care Act by President Trump’s executive order, two of Montana’s three health insurance marketplace providers were left out in the cold, not being allowed to revise their rates.
That changed on Monday morning, according to Dan Stusek, spokesman for State Insurance Commissioner Matt Rosendale.
“The Center for Medicare and Medicaid Services contacted the Montana Department of Insurance this morning and reversed its decision of last Friday, that would have prevented Montana health insurers from re-filing their rates to adjust for President Trump’s decision to withhold CSR payments,” said Stusek. “Based on this announcement from CMS, and a review of Montana law, this office has notified Montana’s three health insurers that they may re-file rates for 2018 based on the material change presented by the absence of federal CSR subsidy payments. We have been notified in return that Montana Health Co-Op and Pacific Source Health Plans will both re-file and increase their rates.”
KGVO News reached Karen Early, spokesperson for The Montana Health Care Co-op on Monday afternoon, who said that her company will need to raise rates by an average of 24 percent for their silver plans to cover the loss of the CSR’s. She was hopeful, however, that federal subsidies might rise enough to cover the increase.
Todd Lovshin with Pacific Source Health Plans said the average increase for their silver plans will be about 17 percent.
Commissioner Rosendale said he will continue to advocate for the lowest possible healthcare rates for Montanans, and he encourages customers to shop wisely for the best rates.