Health insurer files for rate decrease for Alaska market

JUNEAU, Alaska – The lone insurer offering policies on Alaska’s individual health insurance market has filed for an average rate decrease of about 22 per cent next year.

If approved, this would be the first time the average rate has decreased under the current federal health care law in Alaska. Rate increases reached as high as about 40 per cent previously and averaged about 7 per cent for this year.

Premera Blue Cross Blue Shield attributes the requested drop in rates to factors including a sharp reduction in the use of medical services by customers and the payment of high-cost claims through a state program.

The company calls the rate decrease encouraging but cautions against drawing any conclusions about a small Alaska market that it says remains volatile.

The filing has yet to be approved.