Health Insurance Exchanges:

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Elijah Lindsey
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Health Insurance Exchanges: Implications

Michigan June 12, 2015 2015 2014 Kaufman,

Public Exchange Geographic Rating Areas Michigan Rating Areas The public exchange splits Michigan into 16 rating areas Insurers must price their plans at the same level for all counties within a

3 Public Exchange Geographic Rating Areas Michigan Rating Areas The public exchange splits Michigan into 16 rating areas Insurers must price their plans at the same level for all counties within a rating area However, plans do not need to participate in all counties within a rating area Rating areas provide a useful way to summarize geographic variation within a state Note: See appendix for a list of counties included in each rating area. Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 2

areas provide a useful way to summarize geographic variation within a state Note: See appendix for a list of counties included in each rating area.

4 Michigan Geographic Rating Areas Rating Area Counties 1 Monroe, Wayne 2 Macomb, Oakland 3 St. Clair 4 Lenawee, Washtenaw, Livingston 5 Lapeer, Genesee, Shiawassee 6 Huron, Sanilac, Tuscola 7 Clinton, Eaton, Hillsdale, Ingham, Jackson 8 Arenac, Gratiot, Saginaw, Bay 9 Berrien, St. Joseph, Cass, Van Buren 10 Branch, Calhoun, Kalamazoo 11 Allegan, Barry 12 Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, Osceola, Ottawa 13 Gladwin, Clare, Isabella, Midland 14 Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Manistee, Kalkaska, Missaukee, Wexford, Leelanau 15 Alcona, Alpena, Cheboygan, Chippewa, Crawford, Iosco, Mackinac, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon 16 Alger, Baraga, Delta, Dickinson, Gogebic, Houghton, Iron, Keweenaw, Luce, Marquette, Menominee, Ontonagon, Schoolcraft Michigan Health & Hospital Association 2015 Kaufman, 2014 Hall Kaufman, & Associates, Hall & Associates, Inc. All rights Inc. All reserved. rights reserved. 3

Joseph, Cass, Van Buren 10 Branch, Calhoun, Kalamazoo 11 Allegan, Barry 12 Ionia, Kent, Lake, Mason, Mecosta, Montcalm, Muskegon, Newaygo, Oceana, Osceola, Ottawa 13 Gladwin, Clare, Isabella, Midland

5 Rating Area Insurer Participation By Rating Area in the Michigan Public Exchange Issuer Name BCN of MI BCBSM Assurant Health Consumers Mutual HAP Harbor Health Plan Humana McLaren Meridian Molina Physicians Health Plan Priority Health Total Health Care UnitedHealthcare Comm. 1 o o 12 2 o o o 11 3 o o o o o o o 7 4 o o o o o o o 7 5 o o o o o 9 6 o o o o o o o 7 7 o o o o o o o 7 8 o o o o o o 8 9 o o o o o o o o o 5 10 o o o o o o o o 6 11 o o o o o o o o o 5 12 o o o o o o 8 13 o o o o o o 8 14 o o o o o o o o 6 15 o o o o o o o o 6 16 o o o o o o o o o o o 3 Total Total Source: Health Insurance Marketplace Premiums for 2014 Databook (Information Current as of Sept 18, 2013). Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 4

1 o o 12 2 o o o 11 3 o o o o o o o 7 4 o o o o o o o 7 5 o o o o o 9 6 o o o o o o o 7 7 o o o o o o o 7 8 o o o o o o 8 9 o o o o o o o o o 5 10 o o o o o o o o 6 11 o o o o o o o o o 5 12 o o o o

6 Michigan Exchange Rates Compare Favorably To Those of Other States $500 $450 $449 Monthly Premium of Second Lowest Cost Silver Plan in State 1 $400 $350 $300 $250 $200 $150 $100 $50 National Avg: $231 $207 $158 $0 AK WY IN ME NC NJ LA WI MS ND WV DE AR MO Avg. FL VA SC GA OH AL NE SD IA UT TX MI NH MT PA IL KS OK TN NM AZ Note: 1) Age weighting for all states is based on expected age distribution in the Marketplaces, estimated by the RAND Corporation. Source: APSE Issue Brief, Health Insurance Marketplace Premiums for 2015, Health and Human Services, avail able at: aspe.hhs.gov (accessed May 12, 2015). Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 5

FL VA SC GA OH AL NE SD IA UT TX MI NH MT PA IL KS OK TN NM AZ Note: 1) Age weighting for all states is based on expected age distribution in the Marketplaces, estimated by the RAND

7 AK NC ND WV FL TN NE OK WY DE IA AL IL TX VA LA OH UT WI Avg. MI SC MO IN ME NJ PA AR AZ KS MT GA SD NM NH MS Michigan Exchange Rates Compare Favorably To Those of Other States 40% 30% 28% % Change for Second-Lowest Cost Silver Premium 20% 10% National Avg:1% 0% -10% -20% -30% -2% -20% Note: 1) Age weighting for all states is based on expected age distribution in the Marketplaces, estimated by the RAND Corporation. Source: APSE Issue Brief, Health Insurance Marketplace Premiums for 2015, Health and Human Services, avail able at: aspe.hhs.gov (accessed May 12, 2015). Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 6

20% 10% National Avg:1% 0% -10% -20% -30% -2% -20% Note: 1) Age weighting for all states is based on expected age distribution in the Marketplaces, estimated by the RAND Corporation.

Exchange Premiums Vary Materially Across the State Adult Age 27 Lowest Cost Silver Rates Rating Area Lowest Silver Rates 1 $180 2 $181 3 $220 4 $218 5 $199 6 $209 7 $222 8 $209 9 $231 10 $229 11 $224

8 Exchange Premiums Vary Materially Across the State Adult Age 27 Lowest Cost Silver Rates Rating Area Lowest Silver Rates 1 $180 2 $181 3 $220 4 $218 5 $199 6 $209 7 $222 8 $209 9 $ $ $ $ $ $ $ $260 Plan Premiums Plan premiums (before subsidies) vary across the state Rates are lowest around Detroit, where plan competition is greatest Rates are highest in the Upper Peninsula, where the number of plans and exchange eligibles is low Source: Health Insurance Marketplace Premiums for 2014 Databook (Information Current as of Sept 18, 2013). Michigan Health & Hospital Association 2014 Kaufman, Hall & Associates, Inc. All rights reserved Kaufman, Hall & Associates, Inc. All rights reserved.

greatest Rates are highest in the Upper Peninsula, where the number of plans and exchange eligibles is low Source: Health Insurance Marketplace Premiums for 2014 Databook (Information

9 Rating Area Rating Area Blue Cross and Priority Health Has the Lowest Premiums in Most Regions Lowest Cost Bronze Age 27 Monthly Premium Issuer 1 $148 2 $148 3 $170 4 $168 5 $159 6 $162 7 $175 8 $162 9 $ $ $ $ $ $ $ $213 Lowest Cost Silver Age 27 Monthly Premium Issuer 1 $180 2 $181 3 $220 4 $218 5 $199 6 $209 7 $222 8 $209 9 $ $ $ $ $ $ $ $260 Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 8

Monthly Premium Issuer 1 $180 2 $181 3 $220 4 $218 5 $199 6 $209 7 $222 8 $209 9 $231 10 $229 11 $224 12 $179 13 $209 14 $209 15 $223 16 $260

10 Penetration Rate Exchange Products Have Limited Penetration Across the State 6.0% Michigan Exchange Penetration Rate By Rating Area 5.0% 4.0% Michigan Avg: 3.39% 3.0% 2.0% 1.0% 0.0% Rating Area Source: Michigan Health & Hospital Association 2015 Kaufman, 2014 Hall Kaufman, & Associates, Hall & Associates, Inc. All rights Inc. All reserved. rights reserved. 9

0% 14 2 16 3 6 11 9 4 15 12 1 5 10 7 13 8 Rating Area Source: https://www.enrollamerica.

11 Michigan Public Exchange Plan Offerings by Issuer and Plan Type Issuer Name HMO PPO Grand Total Assurant Health Blue Care Network of Michigan Blue Cross Blue Shield of Michigan Consumers Mutual Insurance of Michigan HAP Harbor Health Plan, Inc. 3 3 Humana, Inc McLaren Health Plan Meridian Choice: Your Connection to Bronson Healthcare Molina Marketplace 9 9 Physicians Health Plan Priority Health ,518 Total Health Care USA, Inc. 8 8 Total 1,880 3,004 4,884 Source: Health Insurance Marketplace Premiums for 2014 Databook (Information Current as of Sept 18, 2013). Michigan Health & Hospital Association 2015 Kaufman, 2014 Kaufman, Hall & Associates, Hall & Associates, Inc. All Inc. rights All rights reserved. reserved. 10

20 20 McLaren Health Plan 175 175 Meridian Choice: Your Connection to Bronson Healthcare 12 12 Molina Marketplace 9 9 Physicians Health Plan 62 62 Priority Health 897 621 1,518 Total Health Care USA,

12 Monthly Premium (Pre-Subsidy) Limited Network Case Study: Rating Area 1 Minimum and Maximum Pre-Subsidy Premiums Adult Age 50 Bronze $500 $450 $461 $400 $350 $300 $250 $200 $328 $235-29% $331 $150 $100 $50 $- HMO Plan Type PPO Source: Health Insurance Marketplace Premiums for 2014 Databook (Information Current as of Sept 18, 2013). Michigan Health & Hospital Association 2015 Kaufman, 2014 Hall Kaufman, & Associates, Hall & Associates, Inc. All Inc. rights All reserved. rights reserved. 11

Insurance Marketplace Premiums for 2014 Databook (Information Current as of Sept 18, 2013).

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Michigan Local Emergency Managers

Michigan Local Emergency Managers Contact Information Alcona County Emergency Management 989-736-8185 [email protected] Alger County Emergency Management 906-387-4444 [email protected] Allegan