Modest Rate Increases for 2016 Health Plans

Individual market to increase on average 6.5%, small group 1.0%

Media Contact: Andrea Miller at 517-284-8668
Consumer Hotline: 877-999-6442
Twitter: @MIDIFS
FOR IMMEDIATE RELEASE - August 18, 2015
LANSING - Michigan consumers and small businesses will experience lower increases in the cost of
their 2016 health insurance plan than those in many other states, according to the Michigan
Department of Insurance and Financial Services (DIFS). DIFS reports that the average approved
rate changes on a premium weighted basis increased by 6.5 percent for the individual market and 1
percent for the small group market.
Many states are reporting rate increases well in excess of 10 percent which is significantly higher
than the rate of health care inflation, said DIFS Director Patrick McPharlin. We are pleased that
Michigan consumers are seeing more modest increases.
DIFS completed the review of health insurance rate change requests for the individual and small
group markets and determined that the requested rate changes were actuarially supported. As in
prior years, DIFS conducted a thorough examination of each companys rate change request. This
examination included review of public comments received throughout June 2015 following the
posting of the rate change requests. Credentialed actuaries evaluated the rates, consistent with rate
review requirements, to ensure compliance with State and Federal laws.
Ensuring rates are adequate but not excessive is critical to make sure consumers not only receive
health insurance coverage at a reasonable price, but can count on the coverage they purchase,
states Director Patrick McPharlin. Michigan has a stable and competitive health insurance market
with a range of options and premiums for consumers and businesses.
DIFS has updated its Rate Change Request Charts to include the final approved rate changes for
each company. These rate changes affect about 900,000 Michiganders enrolled in individual or
family policies or through their small group employer. Michigans premium increases are the result
of a number of factors that vary by market. In the individual market, Michigan companies attributed
the change to annual health care costs, the expected reduction in Federal program reinsurance
recoveries, and higher than expected claim costs. In the small group market, many companies
experienced better than expected results, offsetting the expected increase due to the change in
annual health care costs.

Open enrollment for 2016 begins November 1, 2015 and continues through January 31, 2016.
Consumers are encouraged to contact their insurance carrier, agent, or navigator regarding how
these rate changes could affect their policy. There are also shopping tools, rate comparisons and
resources available on the DIFS Health Insurance Consumer Assistance Programs (HICAP)
website, www.michigan.gov/hicap and the Healthcare.gov website.
For more information about DIFS or the services provided, please visit the website
at www.michigan.gov/difs or follow them on Twitter.
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