FOR IMMEDIATE RELEASE
May 7, 2018

Contact: Tom Waldron , The Hatcher Group, 410-962-5707
Consumer Health First Issues Statement on Major Increases in Health Insurance Rate Requests
Consumer advocacy group urges consumers to recognize that rates will likely come down if planned reinsurance program is approved
After health insurance providers CareFirst and Kaiser Permanente proposed significant rate increases for the individual insurance market, Consumer Health First issued the following statement from Beth Sammis, president of the board and former acting commissioner of the Maryland Insurance Administration:

“The rate increases requested by CareFirst and Kaiser Permanente demonstrate the importance of a transparent, thorough rate review process and the urgent need to establish a state reinsurance program, which is now being reviewed by the federal government. 

“We have analyzed the market and strongly believe that implementing a state reinsurance program should result in an across the board decrease of at least 30 percent in rates for both HMO and preferred provider coverages. Such a reduction would bring the rates for CareFirst’s HMO below the rates for 2018 and sharply reduce Kaiser’s proposed premium increase – a big win for consumers.

“We caution consumers to remember that the requested rate increases are not final. If the state reinsurance program is authorized by the federal government and implemented in Maryland, consumers will see more affordable premiums in the individual market for the first time in many years. 

“Finally, we commend Maryland Insurance Commissioner Al Redmer Jr. for continuing an open and comprehensive process and directing his staff to conduct a thorough rate review by requiring CareFirst and Kaiser Permanente to provide much more detailed data to substantiate the need for the requested increase. This includes requesting complete information on their high-risk and costly enrollees and the outcomes of their wellness programs as advocated for by Consumer Health First.

“Consumer Health First looks forward to working with the Maryland Insurance Administration as we thoroughly review the proposed rates and provide comments that reflect the best interests of Marylanders.”


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Consumer Health First is a statewide, non-partisan, grassroots alliance of 100 organizations and more than 1,800 individuals that seeks solutions and advances reforms that promote health equity through access to comprehensive, affordable, high quality health care for all Marylanders. For more information, visit www.consumerhealthfirst.org .