Insurance rates under Affordable Care Act set to spike in 2017
CEDAR RAPIDS, Iowa (KCRG-TV9) – Iowa’s Insurance Division approved big rate hikes Monday for companies offering insurance plans under the Affordable Care Act, also known as Obamacare.
The largest hike was for Wellmark, which will raise rates an average of 42.6%. This will be the first year Wellmark will offer plans on the state’s Health Insurance Marketplace. Aetna, which is the largest provider on the marketplace right now, will raise rates an average of 22.6% in January. Gunderson rates will rise 19.8% and Medica rates will increase 19%. Avera, another newcomer to the marketplace in 2017, has asked for a 5% hike.
The division held hearings on the rate hikes in July where consumers expressed anger over the rising insurance costs. Insurance companies say the rate increases are in line with the rising costs of health care with more people now insured and seeking care.
Subsidies will help most of the 55,000 people enrolled through Iowa’s Health Exchange cover some of the costs of the increase. 87% of enrollees now are getting subsidies.