Hogan and Redmer Announce Lower Health Insurance Rates for Marylanders

Marylanders will pay lower rates for health insurance on the individual market next year, thanks to a month-long effort to prevent sharp rate increases. Governor Larry Hogan and Maryland Insurance Commissioner Al Redmer Jr. announced the lower rates on Friday in Annapolis after the Maryland Insurance Administration approved the new rates for plans offered on the state’s health insurance exchange.  

The exchange provides insurance for about 200,000 Marylanders who do not receive health coverage through their employers.  

Governor Hogan, a Republican, worked with the Democratic-led General Assembly to pass a bill that maintained a tax on insurance carriers. This tax funds a reinsurance program, which helps insurers cover the cost of expensive claims. Hogan described the program as the largest of its kind in the U.S. and a potential model for other states.  

The federal government approved the reinsurance plan, leading insurance companies to revise their rate requests for 2019. Initially, CareFirst and Kaiser Permanente had requested average rate increases ranging from 18.5% to 91.4%, depending on the plan type. However, the new rates will now decrease by 7.4% to 17%.  

CareFirst is reducing its HMO rates by 17% and its PPO rates by 11.1%. Kaiser, which had sought a 37.4% increase for its HMO, will now reduce that rate by 7.4%.  

Hogan and Redmer emphasized that their actions were necessary due to the federal government’s inability to address healthcare challenges. “Without immediate action, the individual market in our state was literally on the brink of collapse,” Hogan said.  

Redmer added, “We decided we had to do what we could at the state level.”  

The announcement also comes as both Hogan and Redmer are running for office. Hogan is seeking re-election as governor, while Redmer is running for Baltimore County executive. Redmer has been balancing his duties as insurance commissioner with his campaign, using annual leave to attend campaign events.  

Redmer often highlights his close ties with Hogan, calling himself a “Larry Hogan Republican” and using the governor’s endorsement in his campaign materials.  

This news is a significant development for Marylanders seeking affordable health insurance, marking a positive shift after years of rate increases.  

Sources: 

• Baltimore Sun
• Maryland Insurance Administration

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