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Small Business Employee Benefits and HR Blog

A First Look at Individual Health Insurance Rates for 2015

Open enrollment is right around the corner, and several states have released initial rate filings for individual health insurance plans that will be offered on and off the public Health Insurance Exchanges.

Preview of 2015 Rate Filings

According to an analysis by PricewaterhouseCooper (PwC), 29 states and the District of Columbia have released initial rate filing information as of this month. The average rate increase is 8.2%, with the average monthly premium around $385.

The average monthly premium, however, does not include the premium tax credits which are available to the majority of individuals and families who purchase coverage on the public Health Insurance Marketplaces. In the federally-run Marketplace in 2014, 87% of those who selected a health plan were eligible for premium tax credits, and are paying an average of $82/month (source).

The rate filings differ widely by state. The states in this analysis with the five lowest average rate increases include:

  • Oregon (-2.5%)

  • Delaware (+1.3%)

  • Maine (+1.7%) 

  • Colorado (+3.6%)

  • Michigan (+4.6%)

The states with the five highest average rate increases include:

  • Indiana (+15.4%)

  • Tennessee (+13.8%)

  • Kansas (+13.6%)

  • Vermont (+12.6%)

  • Arkansas (+11.7%)

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Source: PwC

Major Carriers Expand Presence in Exchanges

As the Exchanges enter year two of operation, more major health insurance carriers are entering the Exchanges or expanding their presence in the Exchanges.

For example, Assurant Health will enter the public Exchanges in 16 states and United Healthcare is expanding their Exchange presence from five states in 2014 to as many as 24 states in 2015. Aetna, Humana, and Cigna are also expanding Exchange offerings in 2015.

What do you think of the initial rate filings for individual health insurance in 2015? Leave a comment below.