One of the five remaining co-ops created out of Obamacare has requested rate hikes of 30 percent, New Hampshire Union Leader reported.
Minuteman Health, which operates in New Hampshire and Massachusetts, is requesting the rate hike due to Obamacare's Medicaid expansion and the risk-adjustment program.
Tom Policelli, CEO of the company, said that most of the increase, about two-thirds, was due to the risk-adjustment program and about one-third was due to the expansion of Medicaid.
There are roughly 20,000 customers on the exchange who will feel most of the burden of the rate increase.
"This is a shadow tax on a very small population, and will likely make individual coverage too expensive for many," the company explained.
"What's going to drive rates higher is not medical costs," said Policelli. "What's going to drive rates higher is unintended results of policy decisions."