Affordable Care Plans May Carry Higher Costs
COLUMBUS, Ohio -- Analysis of proposed health insurance plans that insurers have submitted for approval so they can sell on the coming federal insurance exchange for Ohio show that the cost to cover health care expenses for consumers will increase significantly. Based on a report released by the Society of Actuaries earlier this year, the Ohio Department of Insurance estimates this increase will average 88%.
While those costs do not specifically track with the premiums that insurers charge individual customers, it is expected that these increases in costs will also translate to significant premium increases for many Ohioans.
Fourteen companies filed proposed rates for 214 different plans to the department. Projected costs from the companies for providing coverage for the required essential health benefits ranged from $282.51 to $577.40 for individual health insurance plans. “We have warned of these increases since a state-specific study in 2011 indicated Ohio would be significantly impacted by the ACA, [Affordable Care Act],” said Lt. Gov. Mary Taylor, also head of the state insurance department. “The department’s initial analysis of the proposed rates show consumers will have fewer choices and pay much higher premiums for their health insurance starting in 2014.”
Estimates from a study by Society of Actuaries released this year shows Ohio’s current average cost to cover medical expenses for an individual health insurance plan is $223. Based on the proposals submitted to the department, the average to cover those costs in 2014 is $420, an increase of 88% compared to the Society of Actuaries study. The proposed rates are not effective and are undergoing review by the department. Rates could be modified before taking effect.
The insurance department released the information to help health insurance consumers continue to prepare for the anticipated price increases. Specific premium information varies widely and can be unique to each individual or employer, but Taylor hopes that the information on proposed costs and rates can help consumers and health insurance consultants determine how their situations will be affected.
In 2010, the federal Patient Protection and Affordable Care Act, which includes sweeping changes to America’s health insurance system, became law. It includes the creation of health care exchanges where individuals and small-business owners in every state can purchase qualified coverage. According to the U.S. Department of Health and Human Services, initial open enrollment on the exchange is set to begin Oct. 1. Coverage purchased through the exchange will have an effective date of Jan. 1, 2014.
Ohioans who have questions about insurance can call the department at 800 686 1526. To learn more about the health care exchange, visit this website.
SOURCE: Ohio Department of Insurance.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.