Arkansas Governor Sarah Sanders is calling on state regulators to reject significant rate hike requests made by major health insurers, describing the proposed increases as “outrageous” and “unjustified.”
QualChoice Life and Health Insurance Company is seeking a 54.4% average increase in individual health plan premiums for 2026. Arkansas Blue Cross & Blue Shield, the state’s largest insurer, has requested an average hike of 23.3% for individual plans. Several other insurers have submitted similarly high requests.
In a strongly worded press release, Sanders said, “Arkansans are tired of getting outrageous bills from multi-billion-dollar insurance companies, and my administration will not allow them to take advantage of our people. Nothing justifies year-over-year premium increases of this scale – it’s wrong and prohibited under Arkansas law.”
She urged Arkansas Insurance Commissioner Alan McClain to reject the proposed increases, stating, “These are excessive and discriminatory. I’m calling on my Commissioner to follow the law, reject these insane rate increases, and protect Arkansans.”
Legal Review Process Underway
Under state law, Commissioner McClain is required to reject any proposed rate increases that are not “actuarially sound” or are deemed excessive, inadequate, or unfairly discriminatory.
The Arkansas Insurance Department must approve or deny the rate filings by August 13, then submit them to the Centers for Medicare and Medicaid Services (CMS). Final approved rates must be published by November 1, in time for the federal Health Insurance Marketplace open enrollment.
Impact on ACA-Compliant Plans
The rate requests affect both on-market plans, which receive federal subsidies, and off-market plans, which do not. Both are compliant with the Affordable Care Act (ACA) and serve the same risk pool of consumers. Arkansas’s ARHOME program only uses on-market plans.
Among six insurers offering individual coverage, QualChoice submitted the highest rate increase request. The company’s proposed 54.4% increase would affect 40,415 policyholders. According to its filing, most of the increase — 37.6 percentage points — is attributed to factors such as increased morbidity, changes in risk adjustment, and higher prescription dispensing fees. Additional causes include increased medical service usage, rising medical costs, and administrative expenses.
Arkansas Blue Cross & Blue Shield, operating as USAble Mutual Insurance Co., covers 107,712 policyholders and is seeking a 23.3% increase for 2026.
Next Steps
The Insurance Department will now review the filings in detail, with public and regulatory scrutiny expected to intensify following the governor’s statement. If the increases are rejected or modified, insurers may be required to adjust their pricing models or appeal the decisions.
The outcome will affect thousands of Arkansans as they prepare to choose coverage during the next open enrollment period.
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