The cost of health insurance plans offered under the Affordable Care Act will jump 20 percent or more next year under rates to be announced Friday by Maryland regulators.
The CEO of Maryland's largest insurer defended the hefty rate increases and said the federal law that expanded health insurance to most Americans needs to be changed if it is to remain sustainable.
"We regret that such rate increases are needed," said Chet Burrell of CareFirst BlueCross BlueShield. "It is the last thing on earth we want. But no company can sustain the kinds of losses we have seen."
The company projects that its total losses since the law went into effect will amount to $620 million by the end of the year, Burrell said. People enrolling in plans are sicker and costlier than the insurer predicted, he said.