Nebraskans better start saving up for their health insurance plan in 2017. A new report shows that Medica and Blue Cross Blue Shield of Nebraska plan to increase premium costs by 35% next year. Enterprise Life plans a 17%-plus hike and Federation Mutual Insurance Company a nearly 19% increase. Those increases are for those who purchase individual insurance policies and are not covered by a group plan.
Art Jetter is the owner of Jetter and Company Insurance in Omaha and says those requests are analyzed by regulators and usually approved.
Jetter says, “Usually because they are based on anticipated claims calculated by an actuary who knows what they are doing. Sometimes I’ve seen them no get the increase they want or requested and it is lower because sometimes the regulator thinks it has been miscalculated. Sometimes that is because of political pressure. Sometimes I’ve actually seen them require the insurance company to take a higher rate than what was requested. It is important to the regulators and all of us that insurance companies collect enough money to pay the claims.”
Jetter says the main reasons given for the increases include rising drug costs and people that are using the services are sicker than others.