Ohio Dept. Of Insurance: ObamaCare Will Cause an 88% Increase in Health Premiums in Ohio

"I've been recently saying that there will be some hiccups in the implementation of my economically Fascist plan. And by hiccups, I meant skyrocketing rate increases. I didn't tell you before because I didn't think it was any of your business. Anyway, it's Bush's fault."

But I was repeatedly assured by Obama and all that my insurance wouldn't skyrocket under ObamaCare...

From the Forbes article by Avik Roy (via Drudge):

Democrats continue to try to dismiss the evidence that Obamacare will dramatically increase the cost of insurance for people who buy it on their own. But on Thursday, the Ohio Department of Insurance announced that, based on the rates submitted by insurers to date, the average individual-market health insurance premium in 2014 will come in around $420, “representing an increase of 88 percent” relative to 2013. “We have warned of these increases,” said Lt. Gov. Mary Taylor in a statement. “Consumers will have fewer choices and pay much higher premiums for their health insurance starting in 2014.”    

The rates that Ohio reported are proposed rates; the Department of Insurance still has to formally approve them. “A total of 14 companies proposed rates for 214 plans to the Department. Projected costs from the companies for providing coverage for the required [by Obamacare] essential health benefits ranged from $282.51 to $577.40 for individual health insurance plans.” 

It’s called “rate shock,” but it’s not shocking to people who understand the economics of health insurance. In August 2011, Milliman, one of the nation’s leading actuarial firms, predicted that Obamacare would increase individual-market premiums in Ohio by 55 to 85 percent. This past March, the Society of Actuaries projected that the law would increase premiums in that market by 81 percent. Like good players on “The Price is Right,” they both came in just under the real figure, 88 percent.  

What are the drivers of the increase? According to Milliman, the two biggest drivers are (1) risk pool composition changes, such as forcing the young to subsidize the old, and the healthy to subsidize the sick; and (2) Obamacare’s required expansion of insurance benefits, particularly its mandated reductions in deductibles and co-pays. 

This is a significant concept to understand. Some people have the impression that the main reason that rates are going up under Obamacare is because of the law’s requirement that insurers cover people with pre-existing conditions. But that accounts for only a fraction—around a quarter—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. 

There is an important difference between these analyses and the one I conducted for California last week. Ohio has reported average premiums across the individual market, for everyone; for California, I looked at the lowest-priced individual-market plans for 25- and 40-year-old men, both pre- and post-Obamacare. We’ll need to go through Ohio’s individual rate filings, especially after they’ve been approved by the state, to get a more detailed sense of what is going on. [emphasis mine]

As I have said many times before, ObamaCare perfectly fits the definition of economic Fascism. But remember that only the Right are Fascists... or something.

Welcome to Hope and Change! Hope you have some change left when ObamaCare's done with you. Unless you're politically connected to the Democrats because then you get a waiver. Not that it'll do much good in the chaos that ObamaCare's going to inflict on health care.

You passed it against the will of the American people. Own it Dems.