Premiums could increase by about 50 percent for some Wilmington residents, study shows

The divisive political climate has forced insurers to seek higher premium increases in 2018, resulting in some Wilmington residents paying almost 50 percent more in premiums, a Kaiser Family Foundation study has found. 

The nonpartisan organization published an analysis Thursday of preliminary premiums and insurer participation in the 20 states and the District of Columbia where rates are publicly available and show the premium for a specific enrollee. The study looked at the second-lowest-cost silver plan in the major city of every state.

Research showed that 15 of the states would have at least a 10 percent increase. Wilmington will have the highest percentage increase of 49 percent among the 21 cities.

A 40-year-old nonsmoker in Wilmington with the unsubsidized second-lowest silver plan will have premiums rise from $423 to $631 per month, the study said. 

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Companies will likely continue to revise their premiums to "reflect uncertainty in the absence of clear answers from Congress or the (Trump) Administration," the study said.

Most marketplace enrollees receive a tax credit to lower their premium and will be protected from premium increases, the study said. 

Highmark Blue Cross Blue Shield of Delaware has asked to increase rates by 33.6 percent for health insurance plans on the Affordable Care Act Exchange. If enrollment is similar to last year, about 27,000 people could be affected by the rate increase. 

In May, Aetna Inc. announced it would pull out of the state's health insurance marketplace next year, ending coverage for 11,854 Delawareans. That makes Highmark the lone health insurance provider. 

Mitch Crane, deputy insurance commissioner, disagreed with the Wilmington figures in the Kaiser study. 

He said there's no relationship between someone's Delaware ZIP code and the rate increase. It's dependent on the six plans offered by Highmark and the proposed rate increases, which depending on the plan, ranges from a 31.84 percent to a 35.21 percent increase. 

"I think it's incorrect," he said of the Kaiser study. "Though I'm not saying 33 percent is a great number either."

Highmark's proposal is based on the idea that the Trump administration won't continue to pay insurers for cost-sharing reductions, which help lower out-of-pocket costs. If Congress comes to an agreement and decides to appropriate these funds, the rate increase will be "substantially lower," he said. 

MORE:Highmark in Delaware ACA marketplace seeks 33.6% insurance rate increase

Highmark spokesman Aaron Billger said in an email that the insurance company established its rates based on what it costs to insure Obamacare members on a market-by-market basis. 

Because there's a "lack of clarity" on the future of the ACA's individual mandate and cost-sharing reductions, the higher rate in Delaware is an "attempt to offset" CSR subsidy payments and the nonenforcement of the mandate, he said. 

State law requires public comments and an independent actuarial review of the proposed rate increase. Crane said the rate won't be finalized until September. 

He encouraged people to submit specific comments about how this increase could affect them. Those who want to submit comments can go to insurance.delaware.gov/public-comment.

Comments can be submitted in writing to Delaware Department of Insurance, Attn: Rate Increases, 841 Silver Lake Blvd., Dover, DE 19904.

Contact Meredith Newman at (302) 324-2386 or at mnewman@delawareonline.com. Follow her on Twitter at @merenewman.