Obamacare Increases Individual Health Insurance Ohio Premiums

Individual health insurance Ohio might become more expensive due to the Affordable Care Act. The Affordable Care Act, also known as Obamacare, is expected to help an estimated 27 million people receive insurance coverage. But many people are concerned about the costs of Obamacare.

Companies offering individual insurance used to be able to discriminate against people with a history of medical conditions by denying or attaching exclusions to coverage. However, the ACA exchange prohibits companies from doing so. This helps lower costs to some customers, but there are other ways Obamacare will cost consumers big money. Not only is Obamacare expected to increase the long-term federal deficit by $6.2 trillion, it is also estimated to increase individual health insurance Ohio premiums by 88 percent. The Ohio Department of Insurance announced the average individual-market premium to be at $420. However, the Department of Insurance still has to officially approve these proposed rates.

Milliman, a leading actuarial firm, predicted increases in premiums by 55 to 85 percent. According to the company, the increases come from changes in the risk pool (premiums from the young and healthy subsidize the payouts to the old and sick) and the increase of insurance benefits but with lower costs.

So who is shouldering these costs to individual health insurance Ohio? Middle-class Ohio residents. Not only will they be paying higher premiums, but also paying higher taxes to pay for the tax credits that allow poorer Ohio residents to obtain Obamacare while avoiding the sky-high premiums.

These hikes in individual health insurance Ohio premiums might be inevitable. Obamacare is almost in full effect. Open enrollment for the online marketplace exchange begins October 1, and nearly all Americans are mandated to obtain minimum essential coverage by January 1, 2014. Individuals who refuse to buy at least minimum essential coverage will face a sliding scale of financial penalties. That means the longer they go without insurance coverage, the more money they will have to pay in fines. In 2012, it was estimated that repealing Obamacare would add $109 billion to the federal deficit.

For more information about Obamacare or how it could affect your individual health insurance Ohio, contact an agent at W.B. Green today!