ODI Report: Individual insurance premiums to jump after ACA

A report released this week by the Ohio Department of Insurance projects that after the full implementation of the ACA, prices for individual insurance policies could increase 55 to 85 percent, while small group plans could cost 5 to 15 percent more and large group plan costs could increase 3 to 5 percent (Source: “Insurance premiums expected to increase, report says,” Columbus Dispatch, Sept. 20, 2011).

According to the report from health care consultant Milliman Inc. (pdf, 69 pages), the cost increase is “primarily driven by the estimated health status of the new individual health insurance market and the expansion of covered benefits. Current insured benefit expenses in the individual market are approximately 40% less than the (employer-sponsored insurance)-small group market. This is attributable to today's individual market having leaner covered benefits, such as the exclusion of maternity services, and a lower-cost population relative to the ESI markets.”

In a statement released by her office, Lt. Gov. and Department of Insurance Director Mary Taylor said “This report clearly shows what I have long predicted: Obamacare will result in bigger government, unsustainable costs and ultimately, less consumer choice.”