Rates are expected to jump by almost 15 percent next year, though tax credits will compensate for them.
The health insurance rates on Maine’s marketplace are expected to increase by almost 15 percent on average for 2024, according to estimates released by the Bureau of Insurance.
Most people in the state will find the rate hikes are offset by tax credits, as they will typically qualify.
Health insurance companies were required to complete the filing for their rate increase requests back in June. Federal officials have been considering the filings since that time. According to the Bureau of Insurance, for Maine, that means that an average increase of 15 percent will be implemented in the state’s marketplace, but that most consumers will be shielded from paying more due to their tax credits.
The highest increase expected for a plan in the state is expected to be from Maine Community Health Options, where the hike will be 17.7 percent, according to the June filings with the bureau. In second and third places will be Taro Health Plan of Maine, which could rise by 16.5 percent, and Harvard Pilgrim health Care, where the rates could increase by 14.8 percent.
Open enrollment for health insurance coverage in 2024 begins on November 1, 2023.
On the other end of the scale, Anthem Health Plans of Maine is expected to see the lowest increases to rates in the state, which will be closer to 11.4 percent on average.
The rate hikes in Maine are expected to align well with those that occurred through the carrier requests last year, at around 15 percent.
According to the Bureau of Insurance, it isn’t uncommon for rates to rise due to the increasing costs associated with healthcare, as well as rising usage of those services, new laws enacted in the previous year, and changes to the way that insurers receive their reimbursements from the federal government, among other reasons.
Still, consumers are being reminded that they won’t necessarily need to pay any more than they’re used to for their premiums as most will qualify for tax credits based on their incomes.
Last year, data from the bureau showed that 80 percent of health insurance marketplace users qualified for advance premium tax credits, which, based on their earnings, notably reduced the amount that they needed to pay for their coverage.
