On Tuesday, August 18, the Michigan Department of Insurance and Financial Services (“DIFS”) announced that it has approved health insurance rate increases that average 6.5 percent for the individual market and 1 percent for the small group market.
Each year, DIFS is responsible for reviewing rate changes proposed by health insurers to determine whether such changes comply with state and federal laws. As part of its review this year, DIFS considered public comments that were submitted after the requested rate changes were posted. DIFS approved all rate changes as requested after determining that such changes were actuarially supported.
According to DIFS Director Patrick McPharlin, the rate increases were modest compared to many other states that reported rate increases in excess of 10 percent.
The rate changes will affect approximately 900,000 Michigan residents who are currently enrolled in coverage through the individual or small group marketplace. A complete list of the approved rate changes can be found on the DIFS website.
Open enrollment for 2016 coverage begins on November 1, 2015, and continues through January 31, 2016.