Medica, an insurance company based around Iowa and Minnesotta, has made an announcement that they plan to raise their rates on residents by 43.5 percent. This drastic increase will mostly affect middle class families, as well as higher income families. Medica insists the change is necessary.
Medica was one of the companies that planned to shut its doors, because of the structure of Obamacare. This would have left residents without any options for healthcare. By raising their rates, they also vowed to stay open in order to insure clients.
“The bottom line is that the individual market still needs reform. We will continue to work with federal and state officials to provide the certainty and stability needed for markets to succeed long-term,” says Geoff Bartsh, Medica vice president of individual and family business.
The Daily Mail continues:
Medica currently has some 14,000 members in Iowa and was the only beacon of hope for some Obamacare customers in the state. Aetna and Blue Cross Blue Shield announced their exits from the Iowa Obamacare exchanges in April, leaving nearly 58,000 people scrambling to find an insurance provider.
Major insurance providers across the U.S. are asking for double-digit premium increases for 2018, as they face uncertainty from the President Donald Trump’s administration as to whether or not they will keep receiving Obamacare subsidy payments. Another reason insurers are asking for such drastic rate increases is that they are finding it difficult to enroll enough health individuals in the state exchanges to offset the cost of sicker, riskier enrollees.
“When you find yourself as the only ones between people getting access to care and people not getting access to care, your view of the situation becomes very different,” Bartsch said. “We’ve filed with the intent to provide access to insurance for all Iowans, whether they are farmers, small business owners or other individuals who need coverage.”