Insurance coverage though the Alaska exchange will be more costly next year
Next month, open enrollment for all U.S. health insurance exchange will begin. Those looking for insurance policies will be able to visit their state’s exchange to find the products that they are interested in. Some of these exchanges offer inexpensive coverage that come with a variety of benefits. In some states, the policies sold through exchanges are becoming more expensive. This is the case in Alaska, where two of the state’s largest insurers are raising rates for the coverage that they offer.
Insurers announce that they will be raising rates on individual coverage by an average of 37%
Premera Blue Cross Blue Shield of Alaska and Moda Health have announced that they will be increasing their rates by an average of 37%. This rate increase affects individuals and not groups. Higher rates will go into effect on January 1, 2015. There has been some concerns over the state’s rate review process, with the federal government suggesting that the process is inadequate, which has led to the dramatic increase in health insurance rates recently.
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Federal poverty level for Alaska is being increased
The federal poverty level for Alaska is also being increased. This could have an effect on the overall cost of health insurance policies sold to individuals through the state’s exchange. Thos that fall within a certain range of the federal poverty level will be eligible for subsidies from the federal government. These subsidies are meant to offset the overall cost of insurance coverage, making it more accessible to a wider range of consumers.
Substandard policies may be cancelled at the end of the year
Cancellation notices may be sent to those with substandard insurance policies in the coming months. These policies were allowed to survive beyond 2014 due to a directive from the federal government. For many insurers, however, these policies are not longer a viable business. Substandard policies do not comply with the federal regulations established with the Affordable Care Act. Those with such policies may have to find new coverage beginning at the end of the year.