Health insurance rates could be growing due to the Affordable Care Act
The Affordable Care Act looms in the near future and stands poised to issue the last of its major changes to the health insurance sector of the U.S. The federal law has been the subject of controversy and harsh criticism since it was passed in 2010, but has not yet been derailed in any significant fashion. The law has already introduced many changes to the health insurance sector, including the introduction of health insurance exchanges, which are meant to give consumers throughout the country access to affordable policies.
Ohio officials warn of impending rate shock
While health insurance exchanges may have noble intentions, they may not be able to make health insurance coverage more affordable for consumers in some states. The Ohio Department of Insurance, for example, suggests that the state’s exchange may actually make health insurance more expensive for the individual market. Governor Mary Taylor shares this belief and has begun warning consumers that they may be paying more for their coverage in 2014.
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Rates for coverage could grow by as much as 88%
According to the state’s Department of Insurance, health insurance in the individual market could raise by as much as 88%. This is based on the rate increase proposals that have been submitted to the Department of Insurance over the past several months as well as the policies that could be included in the state’s exchange program. Regulators suggest that all signs point to a dramatic increase in health insurance premiums, suggesting that the state’s exchange system will be a major contributor to higher rates.
Federal provisions likely causing spike in health insurance costs
Ohio’s health insurance exchange is not entirely to blame for the impending rate increases, of course. State officials suggest that the Affordable Care Act has introduced many changes to the health insurance sector that allows premiums to grow exponentially. One of these provisions includes making health insurance coverage mandatory for all U.S. citizens, but not introducing any incentive for healthy consumers to continue paying for coverage that they may never use, leaving the market full of high-risk consumers that represent significant losses for insurers.