Why insurers are paying $50,000 a year to keep their doctors
The top-selling health insurance plan in the United States, UnitedHealthcare, is asking for more than $50 million from insurers in a proposed new insurance premium increase.
The company says it will pay out more than double the $20 million in premium increases for 2018, but only if the rate-setting process is sped up to ensure that consumers receive the same quality coverage.
The new premium increases will take effect in 2020, according to the company’s filing with the Securities and Exchange Commission.
The proposal would be for a $50 per-month increase on average for individual and small group plans.
UnitedHealth says it expects that average premium increase to be roughly $15,000 for individuals and $20,000 to $30,000 in small group premiums.
The insurer also expects that the average rate-setter will receive a premium increase of about 15 percent.
The proposal was approved in September by the Federal Insurance Commissioner.
It is subject to Senate approval.
United Health says it is considering a “re-evaluation” of its rates, but it is confident that the changes it makes will not result in higher premiums for consumers.
“We expect the new rates will result in a substantial rate increase for consumers, including individuals, families, and small employers,” UnitedHealth said in its filing.
“The re-evaluations will include a consideration of the cost of insuring coverage for individuals, and will also include an analysis of the impact of the rate changes on small employers and small businesses, and on the coverage they receive.”
Insurers are currently negotiating rate increases with the Federal Reserve to meet a key requirement set by the law.
The rate increases will come into effect at the end of 2020.
The Federal Reserve is expected to release its next rate report on Thursday.