Effects of Implementing State Insurance Market Reform, 2011-2012

FINAL REPORT

PRESENTED TO:

Office of the Assistant Secretary for Planning and Evaluation

U.S. Department of Health and Human Services

200 Independence Avenue SW Room 443F.3

Washington, DC 20201

202-690-7272

PRESENTED BY:

NORC at the University of Chicago

Stephen M. Smith

Senior Vice President

55 East Monroe Street

30th Floor

Chicago, IL 60603

(312) 759-4000

(312) 759-4004

This study builds upon the research and methods of the "Trends in Premiums in the Small Group and Individual Insurance Markets, 2008-2011" study. It completes data collection for the 2011 insurance rate filing year and adds some data for 2012. It finds that premium increases have slowed since 2011, the same year ACA rate review regulations went into effect. In the individual market, the average premium increase declined from 11.7 percent in 2010 to 7.0 percent in 2011 and 7.1 percent in 2012. In the small group market, premium increases declined significantly from 8.8 percent in 2010 to 6.1 percent in 2011 to 4.8 percent in 2012. In addition, regulators reduced rate requests of insurers more extensively after ACA rate review provisions went into effect.