The Affordable Care Act included annual premium rate review and rebates for policies not meeting medical loss ratio standards for the percentage of total premium spent on clinical services and activities that improve health care quality. This study analyzed rate increases and medical loss ratios for individual market and small group policies by State for plan years 2009 and 2010 and provided baseline data before the effects of health reform and for plan year 2011 to determine the initial effects of health reform.
The magnitude of premium increases declined between 2010 and 2011, following several years of increasing rate requests. The year 2011 was the first in which carriers were subject to the Affordable Care Act rebate and Medical Loss Ratio requirements. The percentage of requests modified (reduced) by state regulatory agencies increased between 2008 and 2011 in both the individual and small group insurance markets. The transparency of the individual and small group markets improved over the study period with states initiating public websites with information on carrier rate filings.
Report Title: Trends in Health Insurance Premiums
Agency Sponsor: OASPE, Office of the Assistant Secretary for Planning and Evaluation
Federal Contact: Thomas Musco, 202-690-7272
Record ID: 9749 (February 1, 2012)