Friday, August 30, 2013

Health Insurance Premiums to Increase 41 Percent Due to Affordable Care Act

Press Release


Health Insurance Premiums to Increase 41 Percent Due to Affordable Care Act

Premiums for Federal Exchange Show Higher Costs for Ohio Consumers and Small Businesses

COLUMBUS — The Ohio Department of Insurance announced today that individual consumers buying health insurance on the federal government's health insurance exchange for Ohio will pay an average of 41 percent more than they did in 2013.

In addition, ODI confirmed previously-released preliminary calculations that insurance companies’ costs to provide individual health coverage will increase by 83 percent.

“Ohio has traditionally had a more competitive health insurance market than other states with a wider range of prices and choices – from simple, high deductible coverage to comprehensive, full service plans,” Lieutenant Governor Mary Taylor said. “That level of diversity is essentially outlawed under Obamacare so Ohio's rates and premiums are going up significantly, and going up more than in other states where prices were already high.”

Premiums Increase 41 Percent:
The Department utilized a National Association of Insurance Commissioners (NAIC) report of premiums reported by Ohio companies at the end of 2012 to compare premiums. Individual exchange plan premiums are expected to increase on average by 41 percent in 2014 compared to 2013, while exchange plans for Ohio's small businesses will increase on average by 18 percent.

For individual health insurance plans, a total of 12 companies offering 200 different plans have been approved by the Department for the exchange. Open enrollment for the exchange will begin on October 1, 2013. For small group health insurance plans, 6 companies offering 184 plans have been approved to sell on the exchange.


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