Oregon Health Insurers Propose 17% Premium Increases for 2024
Health insurers in Oregon are proposing significant premium increases for the individual and small business markets next year. Recent filings indicate an average increase of 17% in premiums for both segments, driven by rising medical expenses, inflation, federal policy uncertainties, and reduced enrollment.
For the state's individual market, insurers are seeking an average rate increase of 17.5% next year. This figure contrasts sharply with last year's average increase of almost 10%. Moda Health, covering approximately 35,000 individuals, has proposed the largest average hike at 25%. If approved, a 40-year-old Portland resident on Moda's standard silver plan would see their monthly premium increase from about $540 to nearly $695. BridgeSpan, a smaller provider with about 100 individual members, is proposing the smallest average rise at just under 12%.
The individual market is facing a contraction in provider options. Providence Health Plan and PacificSource Health Plans have announced their exit from this market by the end of the year, reducing participating insurers from six to four. However, state representatives assure that all counties will continue to have at least three insurers. Moda, Regence BlueCross BlueShield of Oregon, and BridgeSpan will operate statewide, while Kaiser Permanente will cover 11 counties.
Small business employers are encountering similar premium pressures. Six insurers in the small group market, which includes businesses with up to 50 employees, have requested an average net increase of 17% for the upcoming year, up from 11.5% last year. UnitedHealthcare seeks the most considerable raise at nearly 29%, impacting over 7,200 employees and their families. A 40-year-old worker on a UnitedHealthcare silver plan in Portland could see premiums increase from $613 to $800. In contrast, Kaiser Foundation Health Plan of Northwest proposes the smallest rise at 9.5%.
State officials attribute part of the strain on premium increases to declining enrollment figures, with the individual market shrinking from about 161,000 in 2025 to approximately 140,000 this year. This reduction in numbers is partly due to the expiration of pandemic-era federal subsidies, which had previously provided tax credits, leaving many to face increased premiums without such financial assistance.
The Oregon Division of Financial Regulation will review the proposed rate increases thoroughly, analyzing financial data and cost projections before final approval. Public input will be solicited during a virtual meeting on July 13, and final decisions are expected by September. The state's reinsurance program, which subsidizes insurers for high-cost claims, continues to mitigate some of the premium hikes, reportedly reducing them by about 10%.