Health Insurance Companies Report Higher Premiums on Federal Exchange for Coming Year
6/2/2014, 6:02 p.m.
COLUMBUS — Today the Ohio Department of Insurance reported that average premiums are increasing by 13 percent for individuals and 11 percent for small businesses for health plans sold in 2015 on the federal exchange created by the Affordable Care Act (ACA).
The 16 companies filing to sell plans on the federal exchange in the individual market proposed average premiums of $374.42 per month compared to $332.58 per month for the same coverage last year. For the small group market, the eight companies filing to sell plans proposed average premiums of $446.78 compared to $401.99 in 2014.
“It’s bad news, no doubt, but it’s what we expected and it’s what the research we did in advance predicted would happen. Ohio has traditionally had a very competitive insurance market which meant our rates were lower than a lot of other states. That means that Obamacare is hitting us harder and driving our costs up significantly,” Lieutenant Governor Mary Taylor said. “Higher premiums will continue to put a strain on consumers and small businesses at a time when our state’s economy is showing strong signs of recovery and growth. Continued and unnecessary headwinds out of Washington are making it more difficult for job creators, hard-working Ohioans and their families to purchase health insurance.”
Company premiums ranged from $316.11 to $528.16 for individual market exchange plans, while small group market premiums ranged from $348.87 to $537.96.
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. The federal government launched open enrollment in October 2013.
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.