2 Of New Jersey's Biggest Health Insurance Companies Announce Double-Digit Rate Hikes

Many New Jersey residents face big rate hikes in their health insurance premiums now that the uncertainty in the Affordable Care Act's future looms large. On Tuesday, the New Jersey Department of Banking and Insurance posted the list of rates offered by individual companies for next year, and the news isn't good for local residents. Many New Jerseyans, particularly those with Obamacare policies, will face insurance rate hikes as high as 28 percent.

Two of New Jersey's largest health insurance companies said they will raise rates by double-digit percentages. Horizon Blue Cross Blue Shield of New Jersey announced that it will raise rates between 16 and 28 percent in 2018. AmeriHealth New Jersey also announced an average 17.1 percent rate hike for its New Jersey plans.

The New Jersey Department of Banking and Insurance posted the list of rates that apply to people who are buying individual coverage (ACA/ Obamacare policies), which is about about 240,000 people in New Jersey (see list below)

Sources say the increase is partially due to President Donald Trump's decision to end subsidies that companies depended upon to pay for ACA (Obamacare) policies. Insurance companies have also cited other factors, such as a weakened enforcement of the individual mandate to buy insurance, as reasons for the hikes.

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In a statement, Horizon Blue Cross Blue Shield cited three factors connected to federal policy decisions that are responsible for the premium increases:

• Weakened enforcement of the individual mandate to buy insurance;
• Elimination of federal funding for "Cost Sharing Reductions," or the subsidies that helped pay for the ACA;
• 2018 reinstatement of the health insurance tax.

"The federal government’s actions will drive costs higher and create additional uncertainty, making a volatile situation even worse," David Huber, Horizon’s senior vice president and chief financial officer, said in a statement. "If cost sharing subsidies are not funded, rates will increase further."

Efforts to bring back the subsidies seemed to be in the cards earlier this week, and Trump initially backed a plan agreed upon by U.S. Sens. Lamar Alexander, a Republican from Tennessee, and Patty Murray, a Democrat from Washington, that would allow state's more flexibility. Trump, facing opposition in the House of Representatives, then backed off that support.

Here is the list of rates posted by individual companies for next year, according to state insurance officials:

Patch file photo