ealth Rate Hikes, Possible Loss of Tax Credits on Horizon for Obamacare Consumers

Several Florida health insurance companies are seeking to increase next year's Obamacare policy rates. Insurers are citing unexpectedly high 2014-2015 doctor visitations, completed labwork and other costs from the law's policy holders as the reason for the hikes.

The proposals come after two years of insurance companies gathering data on how active policyholders would be under their plans. Now that they have more information, the companies wanting to increase their rates are asking for permission from regulatory agencies to do so.

Due to Obamacare, health insurers must now disclose all planned rate increases over 10 percent and give reasons to justify them by agencies before they take effect. While the regulatory agencies in each state have the ability to deny any increases, the more likely outcome would be negotiating a hike lower than the one proposed by the insurer.

Out of the rate hike proposals made by health insurers available in Florida, Aetna's is the highest with a 21 percent increase. Coventry wants to raise their rates by 16 percent; Preferred Medical Plan by 14.5 percent; Cigna by 12.82 percent; and United Healthcare by an average of 18 percent. For UHC, individual insurance policies signed up for outside the Obamacare market exchange would go up by 31 percent on average.

While Obamacare policy holders receiving federal subsidies for their health plans will not be affected by the hikes as much as those without subsidies, the U.S. Supreme Court's upcoming decision on whether those subsidies are lawful would affect those consumers significantly if justices rule against them.

The subsidies—tax credits that help keep policies affordable for low-income consumers, which include 1.3 million Floridians—are to be ruled on by the end of June.

Final rates for all plans under the legislation will be disclosed by November 1.