Columbus Dispatch...
Health law likely to send premiums through roof, state says
Critics question state analysis from department led by health-law foe
By Catherine Candisky

A new report projects that the cost of health-insurance premiums in Ohio could increase by as much as 150 percent — or drop by 40 percent — in 2014, when key provisions of the new federal health-care law kick in. 

The analysis was commissioned by the Ohio Department of Insurance to determine how the Affordable Care Act would affect premiums. It found that Ohioans who buy individual policies would have their costs rise the most. Rates also are expected to increase for those with employer-sponsored coverage, but not nearly as much. 

Lt. Gov. Mary Taylor, a leading critic of the law who as head of the Ohio Department of Insurance is in charge of implementing much of it, called the findings “alarming.” 

“While ‘Obamacare’ supporters may argue these changes are necessary to ensure access, the results mean even more financial burden on the backs of taxpayers,” Taylor said in a statement. 

“This report clearly shows what I have long predicted: Obamacare will result in bigger government, unsustainable costs and ultimately, less consumer choice.” 

But consumer advocates and supporters of the health-care law challenged the findings and blasted Taylor, saying her partisan rhetoric is unprofessional. They also raised doubts about her ability to implement a state insurance exchange where consumers can shop for health insurance and other components of the law. 

“I’m just astounded by what appears in this report. It appears to be a political document devoid of reality,” said Ron Pollack, executive director of the Washington, D.C., nonprofit group Families USA. “Premium costs are going to come down.” 

Advocates said Taylor should be focused on helping Ohio’s 1.5 million uninsured find affordable coverage and working to keep costs down for those who have it. 

“Given her open hostility to the Affordable Care Act, Ohio consumers can have no expectation that she’s working for them,” said Cathy Levine, co-chairwoman of Ohio Consumers for Health Coverage. 

Despite Taylor’s condemnation of “Obamacare,” Republican Gov. John Kasich has insisted that Ohio is moving forward to create a state exchange and implement the law championed by President Barack Obama. 

The report’s release came the same day that the U.S. Department of Health was awarding $109 million to states, including $4 million to Ohio, to beef up oversight of insurance-rate increases. The state insurance department will use the money to hire additional staff members to review insurance companies’ requests to raise premiums. 

The state agency used nearly $224,000 of an earlier grant under the federal health-care law to help create a state exchange to finance the report by Milliman Inc. 

The analysis found that the premiums of Ohioans who buy individual insurance policies could jump 55 to 85 percent in 2014. Premiums on policies offered through small businesses might increase 5 to 15 percent, and the cost of insurance through large employers might jump 3 to 5 percent. 

The increases do not include medical inflation, which has pushed up health-care costs about 7 to 8 percent a year. The report also warned that insurance rates are influenced by a range of factors and can vary widely, from an increase of as high as 150 percent to a drop of as much as 40 percent. 

The report also projects that the ranks of Ohio’s 1.5 million uninsured would be cut in half by 2017 as enrollment in Medicaid and other public-health programs grows. The number of Ohioans buying individual policies also is expected to grow. 

Several nonpartisan reports have found that insurance rates would decrease under the new law. 

A Congressional Budget Office analysis predicted that premiums on individual plans would fall by 14 to 20 percent. A report by the Urban Institute and Robert Wood Johnson Foundation found that small businesses’ health-insurance costs would fall by 8.6 percent. 

Read it at the Columbus Dispatch