Iowa approves double digit rate hikes for ACA plans

The Iowa insurance commissioner has approved double-digit premium rate increases for insurance plans held by thousands of Iowans, both through the Affordable Care Act and those plans that don't have to meet the law's requirements.

The state insurance division announced the decisions by Commissioner Nick Gerhart on Wednesday afternoon.

The insurance division said Coventry Health Care of Iowa, which has been on Iowa's ACA exchange since its inception, was being granted an average 19.8 percent increase for 35,000 to 47,000 policyholders.

Meanwhile, Wellmark Blue Cross and Blue Shield was granted an increase of 24.5 percent on average for 23,000 policyholders with ACA-compliant plans.

The company had sought a 26.5 percent increase.

The increases, which will take effect Jan. 1, aren't just limited to policies that conform to the standards of the health care law.

The insurance division also approved Wellmark's request for a 17.6 percent increase for its 104,000 policyholders with plans that don't have to meet the requirements of the Affordable Care Act. The increase was what the company requested.

At a hearing on the proposed rate increases this summer, insurance company representatives cited higher health care costs and greater utilization than anticipated.

The insurance division said it used an independent review to assess the appropriateness of the requests.

The increases don't apply to most Iowans, who get their insurance through their employers or from government programs such as Medicare and Medicaid.