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Thousands of Maryland residents who buy health insurance from the state could see an 18% spike in their premiums in 2026.
The Maryland Insurance Administration announced the proposed increases from healthcare providers on Tuesday, June 4.
Insurance companies are seeking an average increase of 17% for individuals and 5.5% for businesses with small group plans.
“Really, all 250,000 people who are buying coverage for the exchange are going to be significantly impacted,” said Johanna Fabian-Marks, the Director of Policy and Plan for Maryland Health Benefit Exchange. “These are the largest increases in the six years since Maryland took action to really stabilize our individual market.”
The increase by health care carriers is in response to the anticipated loss of federal funds, according to the Maryland Insurance Administration.
Federal tax credits offered through the Affordable Care Act are set to expire at the end of the year.
If Congress reauthorizes the enhanced tax credits, increases would be about 5% to 7%, instead of 8% to 18.7%, officials said.
CareFirst BlueChoice requested the biggest average increase for individuals in the marketplace at 18.7%. Optimum Choice by UnitedHealthcare requested 18.6% and Kaiser Permanente requested 12%.
“People could be looking at an average increase of more than $800 per year, per person in their premiums,” Fabian-Marks said.
The Maryland Insurance Administration is reviewing the requests from healthcare providers. The rates need to be approved by the commissioner, and decisions are expected in September.
“We will be examining rates filed by carriers closely in the coming months, and urge Congress to take action to address affordability of health coverage,” said Commissioner Marie Grant in a news release.
The Maryland Insurance Administration is currently working with the Maryland Health Benefit Exchange on designing a state subsidy authorized by the state legislature with House Bill 1082. The measure was established to mitigate the impact of a reduction in federal tax credits.
“We are in the process of developing a state program that will provide some financial assistance to people next year to step in if these tax credits do go away,” said Fabian-Marks. “But we’re not going to have the funds at the state level to fully replace the value of the Federal tax credits that would be expiring.”
The Maryland Insurance Administration will hold a virtual public hearing on the proposed premium increases on July 30. Find more information HERE.
“Feedback from all stakeholders is very important and we urge everyone to participate in the public hearing,” Commissioner Grant said in a statement. “Health insurance costs impact everyone, and we want to give all Marylanders the opportunity to be heard as we consider the proposed rates.”
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