Big rate hikes coming in 2022 for some Michigan health insurance plans [Detroit Free Press]


State regulators have approved large increases in health insurance rates for 2022, which would reflect the recent pent-up demand for medical procedures and services that people are delaying due to previous outbreaks of COVID-19.

The OK’d increases by the Michigan Department of Insurance and financial services take effect January 1st and will average 7.1% for small group plans – businesses and organizations with 50 or fewer employees – and 4.7% for individual market insurance policies purchased through the website. The new tariffs will impact around 742,000 people.

The rate hikes are much larger than what regulators approved last year as insurers saw fewer claims during the pandemic as people delayed elective procedures and made fewer doctor visits. These previous increases, 1.4% for small groups and 1.1% for individual policies, were unusually small by historical standards.

Mike embry, president of SouthfieldInsurance agency Comprehensive Benefits, said its small groups of clients with PPO plans typically see increases of 6% to 7% for 2022 and those with HMO plans increase from 8% to 11%.

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“Last year, because of COVID, the rates were relatively stable,” Embry said. “I think a lot of people were postponing their doctor’s visit, postponing procedures.”

The good news is that many dental and vision plans have prices that remain stable or even decline over the next year, Embry said. He attributes this circumstance to the fact that people delay returning to the dentist or optometrist longer than they did to the doctor.

“On the dental and vision side, we’ve actually seen rate cuts for two years,” he said.

Michigan Blue Shield Blue Cross, the largest player in the employer-sponsored insurance market, is increasing rates by 7.9% in 2022 for its small group plans and 6.9% for its small group plans Blue Care Network.

A Blue cross Representative previously noted that between 2015 and 2021, its rates for small groups saw modest average annual increases of 1.2%.

The open enrollment period for individual policies on the website begins November, 1st and crosses January 15th, although people must register by December 15 for the cover to begin January 1st. Michigan residents can choose individual plans from nine different insurance companies, one less than last year because Total Health Care United States is picking up.

The rate increases on individual policies will not have a direct impact on everyone who purchases a plan from, as the Affordable Care Act grants for those eligible for income also increase as the income increases. sticker prices on fonts go up.

President Joe biden The COVID-19 bailout, enacted in March, temporarily extended eligibility for these grants to high-income people for 2021 and 2022, and also reduced premiums for those already eligible.

An investigation of the Kaiser Family Foundation found this Michigan this year has the third cheapest “benchmark plan” premiums for individual policies, an average of $ 347 per month for the second cheapest money plan for a 40 year old. The average for the we was $ 452.

Contact JC Reindl at 313-222-6631 or [email protected]. Follow him on Twitter @jcreindl. Learn more about the companies and subscribe to our business newsletter.

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