Premera expects big cut in health insurance premiums on Alaska's individual market

WASHINGTON — Premera, the sole insurer in Alaska's individual insurance market, announced Tuesday that it expects rates to drop more than 20 percent in 2018, a major turnaround for the beleaguered market.

Premera attributes the requested rate decrease of 21.6 percent — yet to be approved by the Alaska Division of Insurance — largely to the state's reinsurance program, which shifts claims from some of the highest-cost customers to a separate federal funding program.

"This rate decrease can be attributed to a number of factors, including the payment of high cost claims through the state's reinsurance program and a significant reduction in the use of medical services by our customers," Premera spokeswoman Melanie Coon said in an email.

But she cautioned that the rates — effective Jan. 1, 2018 — were a good sign but not a final one.

Read more: https://www.adn.com/alaska-news/health/2017/08/01/premera-expects-a-21-6-percent-decrease-in-individual-market-premiums-for-2018/