NEWS

Wellmark, Coventry double-digit rate increases approved

Matthew Patane
mpatane@dmreg.com

Iowa's chief insurance regulator has approved double-digit premium rate increases affecting thousands of Iowans.

The Iowa Insurance Division said Wednesday that Insurance Commissioner Nick Gerhart has approved increases requested by Wellmark Blue Cross & Blue Shield, Coventry Health Care and Gundersen Health Insurance.

All of the rate increases are for policyholders holding individual health insurance plans. They will go into effect Jan. 1.

For Wellmark, Iowa's dominant health insurance carrier, Gerhart approved rate increases of 17.6 percent to 28.7 percent on average for different insurance plans. Those rate increases affect about 137,000 Wellmark policyholders.

Wellmark's rate increases are split among pre- and post-Affordable Care Act plans.

Gerhart also approved a 19.8 percent rate increase on average for Coventry, the largest Iowa carrier that sells insurance policies that qualify for Affordable Care Act subsidies.

Coventry's rate increase will affect between 35,000 and 47,000 Coventry policyholders, according to the Insurance Division.

The division also approved a 9.4 percent rate increase on average for Gundersen plans, affecting about 60 policyholders.

Earlier this year, Iowans railed against the then-proposed rate increases at a lightly attended hearing regarding the proposals.

Officials from both Wellmark and Coventry, however, have said premium increases are needed due to higher-than-expected health care costs.