Report: Health insurance law to raise rates for some
A controversial health insurance law passed last spring will lower rates for many Mainers but raise them for older residents and those in rural areas, according to an independent report from a Massachusetts consulting firm.
Passed last May as LD 1333, the law, now known as PL 90, made a number of changes directed to the 40,000 people who buy insurance independently or through companies with 50 or fewer employees, including giving insurance companies more leeway in setting rates based on geography and age. Commissioned by the state, Gorman Actuarial found that about 20% of Mainers who are older and live in rural areas will pay more, according to the Bangor Daily News. Overall rates for individuals could drop 12%-15%, which would create growth in that market. Rates in the small group market, which includes many small businesses, were expected to remain largely the same, except for older Mainers in rural areas, who could see their rates increase an average of 20% more than they would have without the law.
The consulting firm presented the report to lawmakers Tuesday. Some of the report's findings are assumptions because the law has not yet been fully implemented.
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