Premiums for Nebraska’s High-Risk Insurance Pool Set to Increase

An 18.4% average premium increase proposed for Nebraska's high-risk Comprehensive Health Insurance Pool (CHIP) may cause some policy holders to drop their coverage, the AP/Omaha World-Herald reports. The program, which provides coverage for "vulnerable" individuals considered uninsurable in the private market due to pre-existing conditions, has seen premiums increase about 70% in the last three years. The AP/World-Herald notes that this year's average increase is actually below those of the past two years, which were 23% and 21%. "Actual" premium increases will range from 11.1% to 28.5% and will vary by policy holder. Smokers and those in rural areas will pay higher premiums, as "rural medical costs are increasing more rapidly" than premiums in urban areas. The AP/World-Herald reports that state law requires CHIP premiums to be 35% higher than the rates charged by the five largest private insurers in the state, whose premiums have also been rising as increasing drug costs and health service utilization drive up medical costs. As a result, there is "little opportunity" for state officials to lower CHIP rates unless state lawmakers change the law or "create a program" to help policy holders cover premiums. "For the most part, our hands are tied," Richard Netley, a member of CHIP's board of directors, said. The new rates will take effect on Oct. 1 (AP/Omaha World-Herald, 7/17).