Ohio Obamacare Costs Revealed
Ohio, Obamacare Cost unlike the state of California is not leaning towards a reduction in Health Insurance premiums. The Ohio Department of Insurance announced an expected increase in individual premium costs. This is based on the rates submitted by insurers seeking to do business on the state of Ohio marketplace; the average individual- health insurance premium in 2014 will come in around $420 per individual. The $420 value represents increase of 88 percent” in premiums when compared to 2013 numbers. In 2013 the average cost to cover medical expenses for an individual health insurance plan is $223, according to the Society of Actuaries study. The Ohio Department of Insurance still has to formally approve the plans submitted.
As of the writing of this document “A total of 14 companies proposed rates for 214 plans to the Department. The costs from the 14 companies to provide plans that include the essential health benefits required by the Affordable Care Act ranged from $282.51 to $577.40 for individuals. The essential health benefits are list of benefits that falls within 10 categories that each plan must provide its members.
There are a few individuals in Ohio that are not shocked by this large rate jump. This is especially true for those individuals that understand the economics of health insurance. In March 2013, the Society of Actuaries projected that the law would increase premiums in that market by 81 percent. The prediction of 88% is very close to where the states numbers are coming in.
What are the drivers of the increase? According to many reports the two biggest drivers that may have contributed to the increase for Ohio (1) risk pool composition: The composition changed due to the removal of pre-existing condition exclusion, and non-discriminatory pricing rules (2) Legal requirements: The Laws requirement of each plan providing essential health benefits as well the mandated reductions in deductibles and co-pays for specific requirements of the Affordable Care Act.
While Ohio may be showing signs of rate increases, there have been other states that have shown a decrease in premiums. There will be many states on both side of the aisle as the numbers continue to come in.