Thomas D. Musco
U.S. Department of Health and Human Services
200 Independence Avenue, SW Room 447D
Washington, DC 20201
NORC at the University of Chicago
Jon R. Gabel
4350 East-West Highway Bethesda, MD 20814
This study was conducted by NORC at the University of Chicago under contract number HHSP23320095647WC, task order number HHSP23337021T, with the HHS's Office of Assistant Secretary for Planning and Evaluation. The authors take full responsibility for the accuracy of material presented herein. The views expressed are those of the authors and should not be attributed to ASPE or HHS.
Data on premium increases were collected from 2008-2011 hard copy rate filings submitted by insurance carriers and from rate filings or rate summaries available on state insurance websites for the small group and individual insurance markets. In the individual market, the average premium increase (weighted by member months) was 9.9 percent in 2008, 10.8 percent in 2009, and 11.7 percent in 2010, and then declined to 8.6 percent in 2011. In the small group market, average premium increases declined throughout the study period, from 11.2 percent in 2008 and 2009 to 8.8 percent in 2010 and 6.7 percent in 2011. There was substantial variability across states in the average rate of increase. In addition to having their rate requests accepted or rejected, carriers could reach some compromise with the state for a modified rate. The percentage of requests modified by states increased between 2008 and 2011 in both markets. The Affordable Care Act provides states with rate review grants to help states implement or improve their review rate process. These improvements also resulted in increased transparency with 23 states initiating public websites in 2010 and 2011 displaying rate filing information.