The Ohio Department of Insurance announced yesterday that 14 insurance companies have submitted proposed rates on 214 plans that could be available next year on Ohio’s federally run health insurance exchange (Source: “Insurance prices still unclear,” Columbus Dispatch, June 7, 2013).
The rates represent an average 88 percent increase in costs for health insurance companies, but it remains unclear exactly how those increased costs will translate to higher premiums. The rates are still under review by ODI and must be approved and submited by July 31 to the federal government for a final review and certification for sale on the exchange.
“This information provides a partial look at what the cost of insurance coverage may look like in 2014, but doesn’t equate to the premiums that will be charged as market competition may influence rates and subsidies will be provided to those under 400 percent of the federal poverty level,” said Amy Rohling McGee, president of the nonpartisan Health Policy Institute of Ohio.
ODI officials said they expect the proposed rates will translate to significant rate increases for consumers in the individual market. People that are young and healthy are expected to see the highest rate increases, while conversely, those who are older or have a preexisting health condition will likely see lower rates.
The number of Ohio consumers who buy individual health coverage directly from insurers is expected to double between 2010 and 2017, from about 3 percent of the state's population, or 350,000 Ohioans in 2010, to about 6 percent of the population, or 735,000 Ohioans, in 2017.