Alexander: Obamacare Continues to Spiral Out of Control, Leaving Tennessee Families Facing Unprecedented Insurance Rate Hikes

Two of state’s largest insurers ask to raise rates for a 2nd time this year to cover losses due to Obamacare

Posted on August 12, 2016

WASHINGTON, August 12 — Senate health committee Chairman Lamar Alexander (R-Tenn.) today made the following statement on reports that two health insurers say they need to refile their rate requests in order to continue to offer health plans in Tennessee next year as a result of increased costs due to Obamacare, further increasing health insurance premiums for Tennesseans:

“Today’s unprecedented news that two of the state’s biggest health insurers are asking for a second opportunity to increase their rates to stay in business in Tennessee – on top of double digit increases requested earlier this year— is only the most recent proof that Obamacare is spiraling out of control. How can anyone continue to defend this law while they watch it wreak havoc on family budgets – stealing money hardworking Tennesseans had set aside to buy a home or send their child to college but will now have to spend on their skyrocketing premiums?”

He continued, “Republicans didn't create this problem but we're ready to solve it, if Democrats will work with us on reforms that provide state flexibility, helping families access the care they need at a price they can afford.”

Background:

In June, health insurance providers throughout Tennessee submitted their proposed plan rates for 2017 to the Tennessee Commissioner of Insurance. All health insurers requested a double-digit increase, with the highest being 62 percent. In an unprecedented move, the Tennessee Insurance Commission is this week allowing two health insurance providers to revise their original insurance rate increase requests of 23 and 29 percent to allow the companies to continue to offer health plans in Tennessee. According to news reports, the providers told state regulators the earlier filings “will not be sufficient to cover their expected financial losses.”

 

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