State agency provides information concerning growing insurance premiums
The Nevada Division of Insurance has announced rate increases that will affect health insurance policies in 2016. The state’s acting Insurance Commissioner Amy Parks notes that consumers benefit from an aggressively competitive market, where 18 different carriers provide coverage every year. The competition in the market has allowed insurance premiums to remain relatively stable, reducing the financial pressure on both consumers and businesses alike.
Rates for policies sold through the exchange will grow by an average of 8.7%
According to the Division of Insurance, health insurance premiums for small businesses will raise by 5% next year. Individual consumers purchasing coverage through the state’s insurance exchange will see an increase in premiums averaging 8.7%. Rates for policies purchased through the private market, however, will increase by an average of 9.6%. Some consumers will see larger increases in premiums due to their medical conditions and where they live within the state. Most consumers are expected to see very modest increases in rates, however, thanks to competition within the market.
Insurers are seeing greater costs due to compliance with the Affordable Care Act
Nevada is not the only state where health insurance premiums are on the rise. Several other state agencies have announced premium increases for 2016 coverage as well. These rate increases are largely due to the costs that insurers are facing when complying with the Affordable Care Act. The federal law introduced several new provisions that have placed insurers under greater financial pressure. Many more now have access to health insurance than they did in the past and these people are beginning to use their coverage, which has lead to more claims payments among insurers.
State provides more information concerning rate increases
The Division of Insurance partners with several actuarial consulting firms in Nevada to review the rate increase proposals coming from insurers. These organizations works together in order to ensure that the market is fair for both consumers and businesses. The Division of Insurance also requires insurers to provide information concerning rate increases for the sake of transparency.