Health insurance premiums

Health Insurance Premiums:

Planning to purchase  health insurance plans in 2016 through the federal exchange may not get hit with the double digit premium hikes as expected according to state insurance officials.

Average premiums for health insurance are scheduled to rise 12 percent for small businesses and individuals, under rates approved by the department of insurance. It is a slight drop from the expected 13 percent increases projected by insurance carriers in May.

The average premium for individual plans in 2014 is $333; the projected rise for 2015 is expected to be about $373 per month. Unfortunately this average, which includes the most and least popular plans, doesn’t tell us very much. It is very important for the consumer to pay close attention to their plan and what is happening to it, as premiums will vary depending on their geographic location.

             For example, CareSource’s marketplace plans, which have been some of the most popular on the exchange, will have low premium increases in the low single digits.

Compare that to another carrier whose plans were also very popular, Medical Mutual of Ohio, whose rates increases are expected to be about 7.7 percent. This data, which was released earlier in the week, does not take into account tax subsidies that many Ohio residents are receiving. Out of the 154,668 who purchased Ohio health insurance plans through the federal exchange in 2014, 85 percent are receiving tax credits that average $250 per month, totaling $32 million going to Ohio residents alone every month.

Employer health care should not be concerned about the premium increases because fully insured companies are not required to comply with Obamacare’s essential health benefit requirements, unlike plans that are sold to individuals and small businesses.

          Politicians who are opposed to Obamacare took the opportunity to use the statistic against the healthcare law for their case that it does not work . According to U.S. Senator Robert Portman of Ohio, the 12 percent rise is “more evidence that Obamacare is not working for  families.”

Tracy McManamon on Google+