Milliman forecasts that the implementation of PPACA will increase premiums by more than 55 percent in 2014 for Ohio residents with health insurance coverage.
The key findings of a forecast report by Milliman Inc., Seattle for
the Ohio Department of Health Insurance are that the changes occurring
as a result of the Patient Protection and Affordable Care Act (PPACA)
will bring down the number of uninsured by 790,000, but increase
premiums by more than 55% for the 735,000 residents who have Ohio
individual health insurance coverage.
According to Milliman
consultants, these trends are “primarily driven by the estimated health
status of the new individual health insurance market and the expansion
of covered benefits.” 1
Says Ohio Lieutenant Governor and
Department of Insurance Director Mary Taylor, “This report clearly shows
what I have long predicted; Obamacare will result in bigger government,
unsustainable costs, and ultimately, less consumer choice.” 2
She
had expressed her objections to Obamacare in a guest column3 earlier
this year and come out vehemently against the costly Medicaid expansion,
the proposed new health insurance regulatory bureaucracy and the market
reforms that would make it difficult for states to regulate Ohio
individual health insurance.
The Milliman report points that
while the percentage of insured Ohio residents could go up by 7.9
percent in 2017, premiums would go up for those who have enrolled in
Ohio individual health insurance plans. The study considered the
potential behavior of individuals and employers based on income level,
age, and health status to make these estimates.
If the PPACA is
implemented and works as expected, PPACA would want major Ohio health
insurance companies to sell policies that meet minimum benefits
requirements on guaranteed issue, on a community-rated basis starting in
2014. Main predictions:
• Individual health insurance
market: Premiums for Ohio residents could increase by as much
as 55 to 85 percent in 2014 (apart from the ongoing trend which is an
average yearly increase of 7 to 8 percent nationwide). The current
health status of some individuals could cause their Ohio individual health insurance premiums to
increase by 90 to 130 percent, while premiums may decrease for others.
• Small group market: For employers with 2 to
50 employees, premiums are expected to register average increases of 5
to 15 percent in 2014, not including the annual medical trend
increases. While premiums may go up by 150 percent for some small
groups, they may decease by 40 percent for other groups, depending on
their current health status.
• Government insurance
market: There will be a dramatic expansion of government
programs when the act is fully implemented. Up to half of all Ohio
residents could be members of some type of government-subsidized Ohio
health insurance plan, including Medicare. More than one million Ohioans
are expected to enter the state's Medicaid rolls in 2014 and more than
500,000 are expected to enroll in the government-subsidized Ohio health insurance exchanges.
Battles
continue to be waged in court and Congress to block the implementation
of PPACA
“Handcuffing states with Obamacare's one-size-fits-all
approach is not the reform we need. Ohioans deserve a consumer-driven,
market-based approach that provides adequate protections along with
accountability, affordability and transparency. We do not need a
government-knows-best set of mandates,” says Taylor.2
2Ohio
Department of Insurance press release, 9/20/2011
3Mary Taylor,
President’s Healthcare Plan is Bad for Ohio and our State Insurance
Market, Guest Column: STATE OF OHIO, DEPARTMENT OF INSURANCE,
COMMUNICATIONS OFFICE, June 24, 2011
Allison Bell, Ohio: PPACA
Could Push 660,000 Out of Group Health Market, publ. 7/26/2011
