DES MOINES, Iowa -- 28,000 Iowans could see their insurance rates more than double if one provider's request is granted.
Medica is the only insurance provider offering individual plans on the insurance marketplace. On Wednesday, they submitted a plan to increase the premiums on their silver plan by 57%.
For most of the 70,000-or-so Iowans on individual health plans, Medica says federal subsidies will negate the rate hike.
However, according to the Iowa Insurance Division 28,000 Iowans don't qualify for those subsidies; and those who do potentially face them disappearing.
The U.S. House of Representatives sued the Obama Administration over the legality of those subsidies and the case is going through the appeals process.
“Right now it's what keeps me awake at night” said Katie Spellman.
WHO spoke with Spellman back in April when she learned she would no longer be able to buy individual insurance through Aetna. Now Spellman, a photographer, and her husband, a farmer, have to think about more than each other.
“Our lives have changed just a little bit in terms of we're pregnant! 13 weeks along” said Spellman.
With the best-case scenario being that 28,000 Iowans see their premiums doubled, it's not babyproofing or bedroom colors that worry the young couple.
“I'm not worrying whether I'm going to be a good mom, I'm not worrying about the midnight feedings, and how I'm going to handle that, I'm worrying about when I come home with my baby am I going to have a $25,000 dollar bill that I have to pay back. To put people that are working hard… I own two businesses and we farm, if I can’t make that happen that says something about the world we're living in” said Spellman.
Medica released a statement reading in part:
“We remain hopeful the federal government will fund the cost sharing reductions, but we are working with the Iowa Insurance Division to help consumers understand the implications of lack of this funding,” said Geoff Bartsh, Medica Vice President of Individual and Family Business.
The Iowa Insurance Division has to approve of these rate increases before the go into effect.
Anyone living 400% over the poverty line will see the full increase