Premium hikes approved this year in Pennsylvania have ranged between 5 percent and 15 percent for Blues HMO plans, with some unregulated plans implementing increases that are much higher, acting Insurance Commissioner Robert Pratter said.
For individual policies, commercial and nonprofit, the approved rate hikes have been under 10 percent, Pratter said.
“Employers may be getting notices of rate increases that are considerably higher,” Pratter said. “These are from for-profit entities and for large groups.”
Here’s the caveat: Pennsylvania’s authority to review rate increase requests is among the most limited in the country. Only Hawaii has less authority, Pratter said. “Our power is quite limited compared to other states,” he said.
The Insurance Department would like to see its rate review authority expanded to include the larger market, such as small groups, Pratter said. Legislation expanding the department’s review power has twice been passed in the House but failed in the Senate.
In a related matter, the U.S. Department of Health and Human Services is expected to release a template in the fall, which will serve as a model for state insurance exchanges, Pratter said. States will have until 2013 to get federal approval for the exchanges. Individuals and small businesses will be able to buy coverage through the exchanges, which will have to provide certain coverage minimums.
Pratter replaced Joel Ario in August, when Ario was named director of the Office of Insurance Exchanges at HSS.
Kris Mamula covers health care and employee benefits for the Pittsburgh Business Times.
Contact him at kmamula@bizjournals.com or (412) 208-3825.