In sharp contrast to the double-digit rate increases in recent years, Obamacare health insurance purchasers in Michigan will see the smallest rate hikes in many years in the upcoming enrollment period.
Michigan insurers plan for average increases in 2019 of 1.4 percent for individuals while small businesses will see a 0.2 percent decrease, according to the state Department of Insurance and Financial Services (DIFS).
In the small group market, seven insurers are seeking decreases, including a 9.5 percent drop by Paramount Insurance Company. Blue Care Network and Blue Cross Blue Shield of Michigan are among those eyeing minor reductions.
In the individual market, the outlier is McLaren Health Plan Community, which is seeking an 11.1 percent hike. In contrast, Priority Health plans a 2.5 percent decline. The DIFS must approve all proposed rates before open enrollment begins on Nov. 1.
The Michigan Association of Health Plans attributed the stabilization of the market to continued competition among insurance companies, resulting in hundreds of plans from which consumers can choose. Each plan is compliant with the Affordable Care Act.
Eleven companies are competing in the individual market and 17 are in play for small group purchases.
Crain’s Detroit Business reported that the annual increases overall were the lowest in a decade.
“Michigan consumers are very fortunate to have such a strong line-up of insurers for the Michigan Health Insurance Marketplace,” said DIFS Director Patrick McPharlin. “Michigan’s competitive market coupled with improved claims experience has led to providers proposing moderate rate changes for 2019.”
A chart outlining average increases for each insurer can be viewed here.