Tags: Ohio | Obamacare | insurance | rates

Obamacare in Ohio Carries a Steep Price Tag

By John Morgan   |   Wednesday, 12 Jun 2013 07:59 AM

The Ohio Department of Insurance announced Obamacare will result in individual health premiums in the state rising a breathtaking 88 percent, on average, based on rates submitted to date.

Writing in Forbes, Avik Roy, senior fellow at the Manhattan Institute and a conservative blogger on healthcare issues, said lower-income Ohioans will benefit from Obamacare subsidies, but other state residents will both pay more in resulting taxes and more in premiums.

"We have warned of these increases," said Lt. Gov. Mary Taylor, a Republican. "Consumers will have fewer choices and pay much higher premiums for their health insurance in 2014."

Editor's Note:
ObamaCare Secrets Revealed

According to Roy, Obamacare's requirement that insurers cover people with pre-existing conditions accounts for only about 25 percent of the rate hike.

"The rest comes from all the other things that Obamacare does, such as forcing people to buy richer insurance benefits; to buy products with all sorts of add-ons they might not need; to pay Obamacare's premium tax; and to pay a lot more, if they're young, to subsidize older individuals."

The Ohio insurance department said the anticipated 88 percent rate hike will take individual premiums in the state to an average of $420 monthly. A total of 14 companies submitted rates for 214 plans to the state agency, with rates ranging from $282.51 to $577.40.

"It's called 'rate shock,' but it's not shocking to people who understand the economics of health insurance," Roy wrote in Forbes.

Like some other states, Ohio opted not to set up its own state health insurance marketplace that is required for the states under Obamacare, so the federal government will operate it.

Not all states appear to be having the same pricey experience as Ohio with Obamacare implementation.

While only a few states have released their rate filings for 2014, few have said Obamacare would lead to significant price hikes, The Hill reported.

According to The Washington Post, California may be "proof that Obamacare is working."

Insurers in California expect to charge lower-than-expected premiums for individual policies there, according to state data, The Post reported.

The competing Ohio and California views "illustrate the deep political divide that colors virtually every aspect of the health law three years after its passage and the difficult task Obama faces as he seeks to promote it a few months before its key provisions kick in," The Post said.

Editor's Note: ObamaCare Secrets Revealed

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