States Protecting Consumers Against High Insurance Premiums

A new report shows several states are going beyond Affordable Care Act provisions to further protect consumers from health insurance premium increases. Released by the Robert Wood Johnson Foundation, the report highlights that in addition to protecting consumers from high insurance costs, some states are working to protect the long term stability of ACA reforms.

 

An analysis of 11 states, conducted by researchers at the Urban Institute and Georgetown University, finds that officials are taking different approaches to protecting consumers. Some, including Maryland and Oregon, established their own reinsurance programs with state funds to better control premium costs. Others, including Colorado, Minnesota and Alabama, have begun transitioning people with pre-existing conditions out of high-risk pools into plans with younger, healthier people.

 

In addition, Maryland, New York and Oregon are protecting against insurers undercutting the exchanges by “locking them out” in subsequent years if they don’t participate in year one—as well as limiting the sale of catastrophic plans. These three states, along with Colorado, also standardized broker compensation inside and outside the exchange to prevent customers from being steered away from one market toward another.

 

“The Affordable Care Act provides a number of protections to shield consumers from dramatically increased premiums,” said Katherine Hempstead, who leads coverage issues at the Robert Wood Johnson Foundation. “Many states are going above and beyond to safeguard consumers against high insurance rates.”