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Published in Health Care
Individual health insurance costs would increase 6.2% on average under proposals COURTESY PHOTO

Individual health insurance costs would increase 6.2% on average under proposals

BY Wednesday, July 06, 2022 12:52pm

Individuals who buy their own health insurance would pay an average of 6.2 percent more for coverage next year under insurance carriers’ recent rate filings with state regulators.

The proposed rate adjustments for policies that renew Jan. 1, 2023, range from a 12.9-percent increase by Lansing-based Physicians Health Plan to Blue Cross Blue Shield of Michigan’s 2.8-percent reduction, according to the Michigan Department of Insurance and Financial Services. Physicians Health Plan has more than 7,000 individual policies while Blue Cross Blue Shield of Michigan insures nearly 53,000 people in the individual health insurance market. 

Blue Cross Blue Shield’s HMO subsidiary, Blue Care Network, has nearly 118,000 individual enrollees and proposed an 8.6-percent rate increase for 2023.

Blue Cross Blue Shield in 2023 plans to offer 48 different plans in the individual insurance market that include an option for virtual primary care and genetic testing for qualifying HMO members.

“We recognize that individuals and families are looking for more ways to customize their health care coverage, so they have more access to the services they really need,” Rick Notter, vice president of individual business for Blue Cross Blue Shield of Michigan, said in a statement. “This year’s additions not only provide members with several more plan options to fit their health care needs and budgets, they’re also providing more value, convenience and access through new partnerships and increased capabilities that we’re very excited to offer as part of our portfolio for the upcoming open enrollment.”

Grand Rapids-based Priority Health, with more than 132,000 enrollees in individual policies, seeks to increase rates by a statewide average of 7.9 percent for 2023.

In issuing the rate summary for individual plans, the Department of Insurance and Financial Services noted that the statewide average premium increase for both individual and small group coverage will vary based on factors that include age and location.

In the small group health insurance market for employers with 50 employees or less, proposed 2023 premium increases average 5.8 percent statewide, according to the state’s rate summary.

Proposed increases range from UnitedHealthcare Insurance Co.’s slight 0.1-percent rate reduction for more than 19,000 small group enrollees, to Humana Insurance Co.’s proposed 12.5-percent increase.

As MiBiz reported last month, Priority Health proposes to increase premiums by a statewide average of 7.6 percent in 2023 for its HMO product for small employers. Priority Health Insurance Co. seeks regulatory approval for a 7.3-percent average increase for PPO and point-of-service health plans for the small group market.

Priority Health covers more than 86,000 people who are enrolled in various small group health plans.

Blue Cross Blue Shield of Michigan, the small group market leader with nearly 187,000 enrollees, seeks to increase rates by 5 percent next year for its PPO plan for small employers. HMO subsidiary Blue Care Network proposes a 6.9-percent increase for 2023 for more than 110,000 policyholders.

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