Rates for individual coverage will increase overall by 0.2 percent and rates for small-group coverage, such as small businesses, will decrease by 0.5 percent, according to the D.C. Department of Insurance, Securities and Banking, which reviews and approves rates for the online marketplace.
The 2021 rates are a “big win for D.C. residents in making health care more affordable and accessible,” said William Borden, a professor of medicine and health policy at George Washington University. He pointed to how people struggled to keep up with rising health insurance premiums even before the novel coronavirus took hold.
“Having health insurance is clearly associated with better health outcomes, and so if there was going to be a sharp increase in insurance premiums that really could be devastating, especially as individuals, small businesses are already struggling financially,” Borden said.
Insurers initially asked for rate increases as high as 30 percent, but most of the insurers decreased their initial rate filings after a virtual public hearing in September.
During that hearing, leaders of the D.C. Health Benefit Exchange Authority, which operates D.C. Health Link, the online health insurance marketplace, advocated premium reductions or freezing rates at 2020 levels. More than 30 people signed up to testify.
The gap between what insurers initially proposed and what the DISB approved after the hearing will save D.C. residents more than $17 million, according to the department’s news release Friday.
Open enrollment in the District runs from Nov. 1 through Jan. 31.
Other jurisdictions also have moved to limit increasing rates.
Maryland Gov. Larry Hogan (R) approved an average 11.9 percent premium rate decrease for individual health insurance plans through Maryland Health Connection, the state-based health insurance marketplace, in 2021. This is the third consecutive year that individual premium rates have gone down in Maryland. Open enrollment in Maryland runs from Nov. 1 through Dec. 15.
The open enrollment period for all three jurisdictions will begin just as the Supreme Court will hear oral arguments on a case to overturn the Affordable Care Act, which could leave more than 23 million people without health care, according to a report from the liberal think tank Center for American Progress.