MD Insurance Commissioner “We’re in a bad place right now”
Cigna has announced that they will be pulling out of the Maryland Individual Marketplace for 2018. Making them the latest carrier to withdraw after suffering huge losses under the Affordable Care Act.
On top of that the leader in the individual market place Carefirst Blue cross Blue Shield is requesting significant rate increases in the neighborhood of 50 to 60 percent.
The decision to approve those increases lies with the Maryland Insurance Administration, who are now seeking a second opinion on the rate increase according to Maryland Insurance Administration Al Redmer.
The commission is bound by state law and they have to allow increases that will allow the carrier to at least break even.
Redmer told 47 ABC Thursday that since the Affordable Care Act was enacted carriers in the state in aggregate have lost about half a billion dollars.
"Those losses are unsustainable and more importantly they're generating premiums that are unsustainable. So we're at a very bad place right now and it's going to be critical that the affordable care act get fixed," Redmer said.
According to current projections Redmer said Marylanders will see increased rates in the individual marketplace in 2018.
"I can guarantee you the rates are going to go up, what I cannot guarantee you today is what those increases are going to be," Redmer said.