Recession Causes Higher Individual Health Insurance Rates In More States

insurers don’t have to heed them. In these particular states, insurance departments can deny health insurers rate increases. However, individual health insurance companies can appeal the ruling or even sue to have it overturned. Oregon regulators approved several years’ worth of double-digit increases, since 2006 premium cuts caused individual health insurance providers to lose money. Unfortunately, the state insurance department’s reparations had exceptionally bad timing for its residents. In addition, they agreed with health insurance companies that an increase in diagnostic tests and higher service provider costs justified the rate increases.

Maine regulators have not been as charitable towards providers of health insurance. Originally, Anthem Blue Cross wanted last year’s average increase in the rate of individual health insurance to be 18.5%, but the state was able to hold the average consumer’s rate hike down to about 11%. The state is holding two public hearings on the issue later this month. Consumer protection groups are planning to attend in full force.

Proponents of healthcare reform claim that these increases show that the current system is not working, especially states like California or Maine, where a single health insurance company holds a near-monopoly. If there is a dominant individual health