Will a Spike in Insurance Costs Slow the Progress Made Since Health Reform?

September 16, 2016 by Kali Schumitz in Blog, Health

Tens of thousands more Marylanders were able to get health coverage in 2015 as more people continued to benefit from federal health care reform and the expansion of Medicaid, but MarylDoctor and patientand must do more to ensure that progress continues.

About 74,000 additional people in Maryland had health coverage in 2015, compared to the previous year, according to new estimates from the U.S. Census Bureau. However, continued improvement is not guaranteed as recent actions by Maryland’s health insurance regulators and insurance providers could threaten this progress.

The Maryland Health Insurance Commission’s recently approved double-digit premium increases for individual health insurance plans, include an average rate increase of 31 percent from Maryland’s largest insurer. This huge jump in price, which will go into effect in the new year, far exceeds any pay increase a typical Marylander buying insurance on the state health care exchange might receive. This means that people will have less to spend on other necessities, which will hurt local businesses.

The good news is that Maryland’s health insurance marketplace provides a variety of choices, and there are some smaller insurers that are doing more to keep price increases in check. And, people with low and moderate incomes will continue to either be eligible for Medicaid coverage or a federal subsidy that helps them afford insurance premiums.

We all benefit when more people are able to get the health care they need. People with Medicaid or health insurance can get regular checkups and see a doctor when they need to. They have fewer emergency room visits and are less likely to develop serious health problems, leading to a healthier, more productive workforce and a stronger economy. State policymakers and those charged with overseeing Maryland’s health insurance industry must take steps to ensure that price increases don’t again put health care out of reach for some Marylanders and jeopardize progress.