Rate Review Annual Report for Calendar Year 2013. 2013 Findings

09/01/2014

Key Findings:

  • Rate review reduced total premiums by an estimated $290 million in the individual market for all states.
  • In the individual market, the average requested rate increase was reduced by 8 percent for the 40 states examined.
  • Rate review reduced total premiums by an estimated $703 million in the small group market for all states.
  • In the small group market, the average requested rate increase was reduced by 11 percent for the 37 states examined.
  • For both markets, the total estimated reduction in premiums for 2013 was approximately $1 billion ($993 million).
  • Together with the 2013 MLR rebates of $250 million for the individual and small group markets, this estimated reduction in premiums amounts to $1.2 billion of savings to consumers in 2013 due to the Affordable Care Act’s rate review and MLR provisions.
  • In 2012 the Affordable Care Act’s MLR and rate review provisions accounted for $1.6 billion in rebates and premium reductions. The combined amount of rebates and reduction in premium amounts for 2013 and 2012 was $2.8 billion.5

5 It is not possible to give cumulative totals from all 3 rate review reports (2012 report, 2013 report, and this 2014 report) because both the 2012 and the 2013 report used data from CY 2012. The 2012 data reported in the 2012 report were not complete and were updated in the 2013 report.

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