Individual markets are yet to be determined. It was noted second quarter that Medica intended to stay in Iowa’s health insurance market. This, of course, was with a 43% higher price tag to help offset the huge influx of claims that this market represents. If the Federal government fails to approve the stop-gap measure and if Medica intends to stay in the market, it would require another 12 – 20% premium increase on top of the already stated 43% increase.
This means there could be a potential of 68% increase in premium on individual markets with the last standing insurance carrier in the state. If this measure is approved, it would be interesting to follow the terms of that approval. I am referring to the amount of dollars and the specific number of months that Federal would continue to support this effort. This would be the last carrier standing in the Iowa’s individual health insurance market that intends to continue to sell individual products.
This would have been an option/the only option in the individual market for up to 72,000 Iowans that buy their own insurance instead of obtaining their coverage through employment or other sources. As the environment continues to change and take shape on the Federal level, it will be determined whether Federal funding will be a reality for all insurance carriers involved.
The stop-gap plan is still in limbo. Without the assurances of the government action, this still remains undetermined. So, what do you do? And when do you do it? It is our recommendation to call us for a free consultation to explore all of your options available January 1, 2018. By being proactive, and learning your options now, you will be in better shape for a seamless transition to your next step.