Highmark in Delaware ACA marketplace seeks 33.6% insurance rate increase

Highmark Blue Cross Blue Shield, soon to be Delaware's lone health insurer under the Affordable Care Act, is seeking a 33.6 percent insurance rate increase through the state's marketplace.

“Highmark’s proposed rate increase reflects the fact that the Federal Government could cut funding for the ACA by discontinuing cost-sharing reduction subsidies,” said Delaware Insurance Commissioner Trinidad Navarro in a news release. “Cost-sharing reduction subsidies are passed on to insurers to assist lower-income individuals and families. In addition, it is unclear whether the ACA individual mandate will be enforced next year. If the federal government fails to live up to its obligations under the law, insurers will likely continue to exit the marketplace.”

About 27,000 Delawareans have health insurance through the marketplace and will be affected by increasing rates and/or insurer withdrawals, the statement read. 

In May, Aetna Inc. announced it would pull out of Delaware's health insurance marketplace next year, ending coverage for 11,854 Delawareans and leaving Highmark Blue Cross Blue Shield of Delaware as the lone health insurance provider. 

Insurance marketplaces were created as part of the Affordable Care Act, or Obamacare, to help Americans who don't receive health insurance through their employer.

Proposed rate increase will not apply to Delawareans on Medicaid or those with group or individual policies outside of the Marketplace.

“Without competition from other companies and with the Affordable Care Act’s fate left up to members of the federal government who appear to oppose it, we are in a difficult position,” Navarro said. 

Delawareans participating in the marketplace have seen premiums continue to rise, influencing Republicans' calls for the repeal of Obamacare.

"The requested rate increase assumes that the cost-sharing subsidies and individual mandate will not be in place for 2018," said Vince Ryan, senior adviser to the commissioner. 

Added Ryan: "Highmark BCBSD’s proposed rate will be thoroughly vetted by the DOI and its independent actuaries before a final rate is determined.”

Reporter Matthew Albright contributed to this story. 

STORY:Aetna pulling out of Delaware Obamacare marketplace

Contact Alonzo Small at (302) 324-2856 or asmall@delawareonline.com. Follow him on Twitter @P_AlonzoSmall.