Tennessee Approves Health Insurance Rate Hikes

Posted at 12:04 PM, Aug 24, 2016
and last updated 2016-08-24 13:04:55-04

Tennessee officials have approved rate increases requested by health insurers offering exchange plans under the Affordable Care Act.

Local news organizations reported rates have been expected to increase next year by an average of 62 percent for BlueShield of Tennessee, 46 percent for Cigna, and 44.3 percent for Humana.

Tennessee Insurance Commissioner Julie McPeak called the increases substantial and said the state's exchange was "very near collapse."

McPeak said Tuesday that her office signed off on the hikes in an effort to keep the program afloat. She said her office feared insurers would leave the marketplace if rates didn't increase.

In 2015, United Healthcare withdrew from the Tennessee marketplace exchange after one year.