Oregon has started their rate review process. Charles Gaba has the details:
Their initial requests ended up boiling down to a weighted average of around 17.2% on the individual market and 8.2% for the small group market….
The net result of the preliminary decisions and the reinsurance program: Assuming these are the final approved numbers (and all of the carriers accept them as opposed to bailing on the market), Oregon’s individual market is only looking at weighted average unsubsidized rate hikes of 8.5% next year.
What is the headline the insurance commission gets?
“State regulators reduce rate increases for Oregonians by 50%”
This is a common incentive structure. We know that the incentives lined up for every interested actor with power to want high initial rate increases to be filed:
The players with the ability to influence rates all have a shared incentive to have initially hideous numbers filed in June and then see hideous shaved down to merely bad for the first day of Open Enrollment in November……
State insurance commissioners won’t mind high filings. They will be able to issue press releases and have interviews where they can clearly, cleanly and honestly state that due to their work, the initial rates came down by 50% before Open Enrollment…
The incentives are obvious. Filing high was a cost free action this year.