By Catholic Online (NEWS CONSORTIUM)
7/22/2013 (2 years ago)
Catholic Online (www.catholic.org)
According to the Indiana's insurance department, under President Barack Obama's healthcare overhaul, i.e. "ObamaCare" insurance rates will increase 72 percent for those with individual plans and eight percent for small group plans.
LOS ANGELES, CA (Catholic Online) - The increase is due primarily to new mandates under the law. The health care overhaul requires insurers to cover those with pre-existing conditions and to offer a minimum level of benefits.
"This new data regrettably confirms the negative impact of the Affordable Care Act on the insurance market in Indiana," Chief Deputy Commissioner with the Indiana Department of Insurance Logan Harrison says. "The Affordable Care Act requires many Hoosiers to purchase more comprehensive and more expensive health insurance than they may want or need. These rates call into question just how affordable health insurance will really be for many Hoosiers."
Costs for individual plans are expected to increase from an average of $255 per member per month in 2012 to $570 in 2014, when the most aspects of the law go into effect, Harrison warns.
The increased costs of individual plans will only impact the people buy insurance on their own, about 200,000 people right now, Harrison said. About 70 percent of Indianans get their insurance through their employers.
The insurance department's figures don't take into account federal subsidies that many people will receive on the new health insurance exchanges for individuals. Even worse, those who earn 100 to 400 percent of the federal poverty level will be eligible for subsidies.
According to the Kaiser Family Foundation, a family of four with a household income of $80,000 would receive a tax credit of about $2,269 to help cover the cost of individual insurance.
Harrison said the insurance department looked at the raw rate increases because Indianans will pay for them whether through tax dollars or directly from their own pockets.
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