DES MOINES, IA – Wellmark Blue Cross and Blue Shield announced today that it has determined the 2015 requested rates it will file with the Iowa Insurance Division (IID). If approved, the vast majority of its individual policy holders will receive, on average, 5.9 percent or less rate increase to their 2015 health insurance premiums. Wellmark also announced it will forgo participation in the federally-facilitated Health Insurance Marketplace (public exchange) in Iowa for one additional year.
2015 Requested Rates
Wellmark will file its requested rates for the individual and small group market with the IID by July 7, 2014. In Iowa, individuals and small groups comprise around 250,000 Wellmark members.
The vast majority of Wellmark’s individual members in Iowa will receive a 5.9 percent or less rate increase to their 2015 health insurance premiums. As allowed under state and federal rules, these members chose to keep their policies established prior to the enactment of the Affordable Care Act (ACA) because they met their needs. These policies are quality insurance products that, on average, would be considered Gold-standard level plans as defined by the ACA.
Wellmark’s requested rate increases for Iowa include:
| Plan type |
Number of Wellmark members |
Requested rate increase |
| Individual Under 65 plans |
130,000 |
5.9% or less |
| Individual Under 65 – ACA plans |
19,000 |
11.9-14.5% |
| Small Group plans
(less than 50 employees) |
90,000 |
2-4% |
| Small Group plans – ACA plans |
14,000 |
less than 4.9% |
It is important to remember that the rate increases will vary by plan. Wellmark members should wait for their individual renewal notice later this year to see how the increases may or may not impact them. If approved, the rate increases would take effect on January 1, 2015.
Public Exchange Decision
Wellmark will forgo participating on the public exchange in 2015, which is the only online store where individuals can receive a federal subsidy toward the purchase of an individual health insurance policy. Despite not being on the public exchange in 2014, Wellmark sold more ACA policies than any other carrier in Iowa.
“Every company determines where to sell their products and we made this decision considering a number of variables,” said Laura Jackson, Wellmark Executive Vice President, Health Care Innovation and Business Development. “We looked at factors like the probability of a state or regional-based exchange and the continued challenges with the current public exchange to name a few. Wellmark will continue to offer health insurance through existing channels – licensed agents or direct from Wellmark – with plans to participate in the public exchange in 2016.”
In May, Wellmark announced the results of its 2014 open enrollment in Iowa and South Dakota. At the conclusion of the 2014 open enrollment period, Wellmark sold more than 24,000 Affordable Care Act (ACA) plans, representing more than 41,000 policyholders. Open enrollment for 2014 health insurance policies began on Oct. 1, 2013, and ended March 31, 2014.
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