The number of double-digit rate increases requested by health insurers has plummeted over the past four years, according to a Friday report from the Obama administration.
Researchers combed through data available from the 15 states that publicly post all requests for rate increases in the individual market. They found that, in 2009, 74 percent of all requests came in above 10 percent. By 2012, that number had fallen to 35 percent. Preliminary data for 2013, which only cover a handful of states, shows 14 percent of rate increases asking for a double-digit bump. Here’s what this looks like in chart form:
Does Obamacare get credit? The administration thinks so: Officials there argue that this has a lot to do with the health law’s rate review program, which requires all rate hikes above 10 percent to undergo additional regulatory scrutiny. Each of the rates gets reviewed by a state or federal regulator and determined “reasonable” or “unreasonable.”
The provision started in September 2011, and that’s right when you see the steep decline in big rate hikes start.