While Montana has experienced a record drop in uninsured residents — with the greatest number of recent Medicaid enrollees coming from the Flathead Valley — the possibility of a hike in insurance costs hangs over tens of thousands of Montanans as insurers seek double-digit rate increases.

The State Auditor’s Office released a survey Tuesday that stated as of May, 92.6 percent of Montanans have health coverage. Montana Commissioner of Securities and Insurance Monica Lindeen said the number of people without insurance has dropped by more than 60 percent in less than three years.

“More Montanans have health coverage than ever before, and there [are] many health plan choices,” Lindeen said in a prepared statement. “But it’s important that we take a close look at these plans to make sure their prices are reasonable and justified.”

Montana’s uninsured rate is just beyond 7 percent — that’s down from 20 percent in 2013 and below the national average of 9 percent.

The significant reduction in 2016 is largely attributed to the Medicaid expansion, which was passed by the Montana Legislature and Gov. Steve Bullock last year.

When the expansion kicked in Jan. 1, officials estimated roughly 70,000 low-income Montanans became eligible for coverage — more than 6,200 of which were Flathead County residents.

As of July 1, more than 4,700 people in the Flathead had enrolled in the expanded Medicaid, according to the Department of Public Health and Human Services. By county, that represents the largest number of Montanans tapping into insurance so far this year, and the third largest percentage increase by population.

Statewide, nearly 50,000 people have enrolled in expanded Medicaid this year, according to the Auditor’s Office.

The report on insured Montanans came roughly a month after health insurance companies nationwide were required to let federal and state regulators know if they intended to raise their prices next year by 10 percent or more for the policies they sell on healthcare.gov.

Each Montana insurance company that sells those policies put in requests to raise prices beyond that 10 percent rate increase for some of their plans — some requesting an average rate change of more than 50 percent.

Commissioner Lindeen said people who buy insurance through the website and receive a premium tax credit would not be significantly impacted by the proposed rate increases — the tax credit caps the amount of premium they’re required to pay.

However, roughly 35,000 Montanans don’t fit into the loophole. As a result, they could experience the full impact of increases.

The Montana providers with a double-digit rate change includes PacificSource, the Montana Health Co-op and Blue Cross Blue Shield of Montana.

For the individual market, Blue Cross Blue Shield had a requested average rate change of 62.1 percent. Montana Health Co-op requested to jump by 22 percent and PacificSource intends to increase by 19.8 percent.

But the proposed rates are not necessarily the final rates.

Lindeen said the rate review process the Montana Legislature created in 2014 established that a commissioner can’t prevent rate increases from taking effect. However, she said the process allows her to determine if the rates are unjustified or excessive, and the insurer can voluntarily lower the increase.

If a company doesn’t lower the rates at the commissioner’s suggestion, Lindeen could release a public finding outlining the injustice of the spike.

Lindeen said she will hold a public hearing on the rates proposed for 2017 by insurers for individual and small group health plans.

The hearing will provide public feedback for the rate review process Lindeen’s office is now undertaking before the final 2017 rates are published.

“This hearing will give Montanans an opportunity to explain how these proposed rates would affect their families and their pocketbooks, and will give insurers the opportunity to justify their increases.”Lindeen said.

To view the propsed rate filings or to comment on the possible rate increases, visit http://csimt.gov/your-insurance/health/2017-rate-filings-and-rate-review/.

Reporter Katheryn Houghton may be reached at 758-4436 or by email at khoughton@dailyinterlake.com.