Study Maps Double-Digit Obamacare Hikes on the Federal Exchange
100 Percent of Products in Delaware, South Dakota and West Virginia Propose Double-Digit Increases for 2016
MOUNTAIN VIEW, CA-- Today AgileHealthInsurance.com released a new study highlighting differences in 2016 Obamacare rate hike requests among states using the federal health insurance exchange, Healthcare.gov. The analysis, based on government data, reveals which states have the highest proposed rate increases and which states have the highest percentage of double-digit rate increases.
The top 10 states with the largest rate hikes requested for a single Obamacare product ranged from 71 percent to 38 percent. Alabama (71 percent), New Mexico (65 percent), Pennsylvania (58 percent), New Hampshire (51 percent) and Utah (47 percent) comprise the top five in this category.
Delaware, South Dakota and West Virginia top the list of Healthcare.gov states where insurers requested double-digit rate hikes on Obamacare products. Insurers in those states requested double-digit rate hikes on 100 percent of Obamacare products, followed by Montana (86 percent) and Utah (83 percent).
"As the Obamacare enrollment period again approaches, consumers will be comparing health plans, and many will find the new 2016 Obamacare premiums to be unaffordable," said Bruce Telkamp, CEO of AgileHealthInsurance.com. "Consumer price sensitivity and the broad adoption of the Internet as a primary way to shop for health insurance bode well for the continued expansion of the term health insurance market."
It is important for consumers to understand that term health insurance represents a distinct category of health insurance coverage and has unique characteristics differentiating it from Obamacare plans. Consumers apply and, depending on their health status (including pre-existing conditions), they may or may not be eligible for specific plans. Additionally, with term health insurance, some consumers may be subject to the Obamacare tax while others may receive an exemption. For many, the combined cost of term health insurance and the Obamacare tax is still less than unsubsidized Obamacare premiums.
The new study on rate hikes combined with recent research regarding premium and deductible dissatisfaction among Obamacare enrollees may result in even greater demand for term health insurance moving forward. As one example, term health insurance premiums for 30-year-olds are over 70 percent less expensive on average than premiums for unsubsidized Obamacare bronze plans. These term health plans are known for very wide provider networks, and enrollment is open throughout the year.
AgileHealthInsurance.com provides a free rate comparison tool that allows consumers to review plans, benefits and costs online. They also can enroll online if they find a plan that meets their needs. For more information on Obamacare rate increases state-by-state, read the article on AgileHealthInsurance's Learning Center.
AgileHealthInsurance.com is a Silicon Valley-based technology company and independently managed division of Health Insurance Innovations, Inc. (NASDAQ: HIIQ). This press release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans and projections regarding new markets, products, services, growth strategies, anticipated trends in our business and anticipated changes and developments in the United States health insurance system and laws. Forward-looking statements are based on our current assumptions, expectations and beliefs are generally identifiable by use of words "may," "might," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue," or similar expressions and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, among other things, our ability to maintain relationships and develop new relationships with health insurance carriers and distributors, our ability to retain our members, the demand for our products, the amount of commissions paid to us or changes in health insurance plan pricing practices, our ability to integrate our acquisitions, competition, changes and developments in the United States health insurance system and laws, and our ability to adapt to them, the ability to maintain and enhance our name recognition, difficulties arising from acquisitions or other strategic transactions, and our ability to build the necessary infrastructure and processes to maintain effective controls over financial reporting. These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements are discussed in HIIQ's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) as well as other documents that may be filed by HIIQ from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. You should not rely on any forward-looking statement as representing our views in the future. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.