COLUMBUS — The
Ohio Department of Insurance today released details of health insurance
plans that insurers have submitted for approval to sell on the coming
federal insurance exchange for Ohio. The Department's preliminary
analysis of the proposed plans for the individual market reveal that
insurers expect the cost to cover health care expenses for consumers
will significantly increase.
Based on a report released by the Society of Actuaries
earlier this year, the Department estimates this increase is an average
of 88 percent. While those costs do not specifically track with the
premiums insurers charge individual customers, it is expected that these
increases in costs will also translate to significant premium increases
for many Ohioans.
A total of 14 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,” Lieutenant Governor Mary Taylor said. “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 Society of Actuaries study released in 2013 showed
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 representing an increase of 88 percent when compared to the
Society of Actuaries study. The proposed rates are not
effective and are currently undergoing the Department’s review process.
During this process, rates may change before becoming effective.
The Department released the information today to help health
insurance consumers continue to prepare for the expected price
increases. Specific premium information varies widely and
can be unique to each individual or employer, but it is hoped that the
information on proposed costs and rates can help consumers and health
insurance consultants determine how their particular situations will be
impacted.
In 2010, the federal Patient Protection and Affordable Care Act
(ACA), which includes sweeping changes to America’s health insurance
system, became law. It includes the creation of health care exchanges in
which individuals and small business owners in every state can purchase
qualified coverage. According to the federal government, initial open
enrollment on the exchange is set to begin October 1, 2013. Coverage
purchased through the exchange will have an effective date of January 1,
2014.
To learn more about the health care exchange visit www.healthcare.gov. Ohioans with questions about insurance can call the Department at 1-800-686-1526
.
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