Everence Insurance, based in Pennsylvania, insures Mennonites. They have about 5000 customers. Under Obamacare, any rate increases greater than 10% have to be submitted to federal review. The carrier submitted a report that said, for them to compete in this small group market, that they need to raise their rates by 11.6%. Presbo’s adminsitration, Kathleen Sebelius (Health and Human Services Secretary) has responded to them that their rate increase request is “unreasonable” and should be repealed. The rationale is that Everence calculated their losses over a 2 year period and for within the state of Pennsylvania. The government likes statistics calculated over only a one year period and for the whole US better. Because if Everence WERE operating in the whole US, then it wouldn’t need a rate hike.
So now the company has to lay out all of its numbers on a public federal website. And the federal government is still trying to get the authority to have final say in ALL insurance company rate hikes. Diane Feinstein has authored a bill to try to do just that, since it wasn’t included in Obamacare. Think that’s been done before