The federal government is extending new funds to state insurance regulators to help them enforce Obamacare consumer protections, as the administration battles headlines of high Obamacare rates.
The Centers for Medicare and Medicaid Services said Wednesday it will provide $22 million to state insurance departments to help them oversee plans offered on Obamacare’s exchanges.
CMS is providing the funds as it fights against headlines of high premium increases being proposed by insurers for 2017. State insurance departments are charged with negotiating with insurers to try to get rates down.
“Last year, despite headlines of double-digit premium increases, when financial assistance, consumer shopping and aggressive state rate review were factored in, premiums through healthcare.gov increased just $4 a month for those receiving tax credits,” said Kevin Counihan, CEO of healthcare.gov, which is used by residents in 38 states to buy Obamacare.
The funding release came on the same day a new report from the nonpartisan Kaiser Family Foundation projected higher average premiums for Obamacare customers in 2017.
Silver plans, the most popular type of plan in Obamacare’s three metal-themed tiers, will on average be 10 percent more expensive next year in major cities in 13 states and the District of Columbia, the foundation said Wednesday.
Insurers are required to disclose proposed rate increases higher than 10 percent. Some insurers have suggested increases of up to 60 percent and more next year, but those rates can be negotiated down.
However, Kaiser found that plans may be higher next year because a program that gives insurers money to offset steep losses is expiring.
