Losses from underpriced policies mean some people buying health insurance for the coming year will be paying as much as 47% more.
The Bend (Ore.) Bulletin reports the Oregon Insurance Division announced Wednesday that individual and group plans would be more expensive in 2016, effecting about 3 percent of the state's population.
Oregon insurance commissioner Laura Cali says increasing rates avoids problems later on. She said insurance carriers lost about $830 million collectively by drastically underpricing plans last year.
People signed up for employer or government-sponsored health plans won't be affected by the increase. Most individual insurance purchasers get a federal tax credit.
Penalties for not purchasing insurance will reach $695 per person or 2% of the household's income by 2016.