Kansas: *Final* avg. unsubsidized 2024 #ACA rate change: +4.5% (unweighted; updated)

Originally posted 8/09/23; updated 11/02/23

Kansas is yet another state where the actuarial memos are heavily redacted, making it extremely difficult to get ahold of the actual enrollment numbers for the individual or small group markets. Once again, without knowing how many Kansans are enrolled in each carriers insurance policies, I have no way of running a weighted average, and therefore can only provide an unweighted average.

With that in mind, for 2024 Kansas individual market carriers are requesting an unweighted average rate increase of 4.5%. One carrier (US Health & Life) does provide an unredacted summary with enrollment, but they're a tiny part of the market which doesn't help much. The small group market carriers are likewise asking for a 4.7% unweighted average rate hike.

It's worth noting that Cigna appears to be leaving the states individual market, while Humana is leaving the small group market...which I've noticed is happening in several other states that Humana currently offers small group plans in as well.

UPDATE 11/02/23: The final/approved rates have been posted to the Kansas Insurance Dept. website; it looks like everything was approved pretty much as is on the individual market, and there was only one carrier request modified on the small group market (UnitedHealthcare was reduced from a 6.1% increase to 3.9%).

From the US Health & Life summary:

Scope and Range of the Rate Increase

The proposed overall rate change for the Ascension Personalized Care (APC) Individual plans offered by US Health and Life (USHL) both on and off the marketplace is 13% based on the current enrollment for 2023. The rate increases vary by plan, ranging from 11% to 16%. A subscriber’s actual rate increase could differ depending on the plan, rating area, age characteristics, dependent coverage, and other factors.

Financial Experience of the Product

In 2022, there were 2,770 members enrolled in APC Individual health insurance plans in Kansas, on average. As of April 2023, there were 3,440 members enrolled in the APC Individual health insurance plans. For the 2022 Benefit Year, the ratio of incurred claims to premium after risk adjustment transfers was 85.4%. When including the non-benefit expenses paid to operate the product (administrative expenses, commissions, taxes and fees), the health plan experienced a net operating income loss in 2022.

• Earned Premium (a): $18,812,680
• Projected Risk Adjustment (b): -$8,033,768
• Incurred Claims (c): $8,031,076 ● Loss Ratio (d) = [(c) - (b)] / (a) : 85.4%

Primary Factors for Rate Increase

The increase in premiums is necessary to ensure financial stability of the plan and allow USHL to continue to serve its members in Kansas and meet its contractual obligations. Primary drivers include:

• Higher than expected increase in annual cost of healthcare, driven by increased utilization of services and per unit cost of services, particularly for pharmacy claims
• Increased utilization of Out-Of-Network services
• Higher than projected enrollment in the Cost Sharing Reduction Plans, resulting in a need for higher premiums to cover reduced member copays, deductibles and coinsurance
• Higher than anticipated payments to the Department of Health and Human services (HHS) to cover plan liabilities of the federal Risk Adjustment Program