Obamacare may be the law of the land, but insurance companies are still getting away with jacking up insurance rates by double digits on certain policyholders.

Despite the passage of the federal healthcare reforms, insurers in many states can hike rates by double digits without the federal government doing anything about it.

In California, Aetna wants to boost rates by 22%, Anthem Blue Cross by 26% and Blue Shield of California by 20% for some policyholders, mostly those from small businesses and self-employed individuals.

In Florida and Ohio, insurers have been able to increase rates by at least 20%, adding hundreds of dollars to monthly bills.

Obamacare requires companies to post their proposed rates, but leaves it up to individual states to decide whether to deny rate increases. Regulators in New York have such authority and have exercised it, while California does not grant state insurance officials the power to stop increases. Dave Jones, California’s insurance commissioner, told The New York Times that failing to give all regulators the ability to deny excessive rate increases was “a huge loophole in the Affordable Care Act.”

-Noel Brinkerhoff

To Learn More:

Health Insurers Raise Some Rates by Double Digits (by Reed Abelson, New York Times)

Americans Get Less for Their Health Money than Citizens of other Wealthy Nations (by David Wallechinsky and Noel Brinkerhoff, AllGov)

As Rates Jump, WellPoint Rewards CEO with $13 Million Pay Package (by Noel Brinkerhoff, AllGov)

WellPoint Lied about Justification for Rate Increase (by Noel Brinkerhoff, AllGov)