Next year, premiums for individual health insurance plans under the Affordable Care Act will rise by about 6 percent on average. Maryland Department of Insurance He said this week that there are still opportunities for savings.
Interest rates rise Last year there was a slight decreaseThat would be an average increase of about 4 percent, but Marylanders will continue to enjoy some of the most affordable individual market rates in the country in 2025, the Insurance Department said in a news release Thursday.
A new insurer, WellPoint Maryland, also received approval from health regulators to sell 10 plans both inside and outside the Affordable Care Act’s individual market, bringing the total number of insurers to five. Marylanders will have at least four insurers to choose from next year, regardless of where they live in the state, the announcement said.
The rates approved by health officials are about 0.5 percent lower on average than insurers originally requested, saving state residents an estimated $6.4 million in premium costs, officials said.
The Department of Insurance, which regulates the state’s $42 billion insurance industry, said next year’s rate hikes are due to an overall increase in claims costs: On average, prescription drug costs increased 10.2%, doctor costs increased 8.5% and hospital costs increased 4.3%.
The Maryland Department of Insurance says federal and state subsidies that encourage younger, healthier residents to buy insurance keep premiums low for everyone. About 80% of people who buy individual plans on the state’s health insurance exchange, the Maryland Health Connection, get a reduction in their premiums through federal tax credits.
The state’s reinsurance program — a fund that reimburses insurers for some of the costs incurred by patients who need the most expensive care — also helps stabilize the market and keep premiums low, the administration said. Approved premiums for 2025 are about 17% lower than in 2018, before the program began. The state’s waiver from the U.S. Centers for Medicare and Medicaid that allows the reinsurance program to exist has been approved through 2028.
“The success of the reinsurance program continues to be evident,” Maryland Acting Insurance Commissioner Joy Hatchett said in a Thursday announcement. “Maryland’s insurance premiums will continue to be among the lowest and most affordable in the country.”
About 271,000 Marylanders would be affected by the approved rates next year, although overall costs and rate increases will vary by plan.
For example, a 40-year-old living in the Baltimore metropolitan area would pay $41 more per month than they paid last year for the cheapest silver plan if they had a CareFirst PPO plan, but would pay $40 less if they had Optimum Choice. CareFirst’s silver HMO plan, the No. 1 choice plan from the largest insurer on the insurance exchange, went up $20 a month for that same person.
In a news release Thursday, Hatchett advised Marylanders to work closely with their health insurance agents and advisors when reviewing their plans to ensure they take advantage of opportunities to offset the cost of premiums.
Insurance officials also approved a 0.3 percent increase in the average price of dental insurance plans in the individual market, where about 96,000 Marylanders buy insurance.
About 227,000 Marylanders are enrolled in small group market plans for businesses with 50 or fewer employees. Rates for these plans will increase by an average of 4.5 percent. More than 225 plans will be offered in the small group market this year.
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