Health Insurance Premium Costs On The Rise
July 23, 2013 — The Indiana Department of Insurance says individual Hoosiers purchasing health insurance will see their premiums increase by an average of 72 percent next year when the Affordable Care Act takes effect. But as Indiana Public Broadcasting’s Brandon Smith reports, the actual cost for many people could be lower.
The state Department of Insurance says Hoosiers purchasing health insurance next year – on their own, not through their employers – could see anywhere from a 250 percent cost increase to a 10 percent savings…translating to a 72 percent average increase. That’s based on premium costs submitted by four insurance companies that will be part of a healthcare marketplace available to Hoosiers beginning next year. Indianapolis Democratic Senator Jean Breaux says it isn’t fair for the department to put out the average number, considering many likely won’t see an increase that high:
“Without having any additional information, without having really a breakdown of what that’s going to be for the individual, that would scare me from purchasing insurance on the exchange.”
Department of Insurance Chief Deputy Logan Harrison says it’s not possible to breakdown how much each individual Hoosier will pay at this point. And he says the 72 percent figure doesn’t take into account tax credits that will be available to Hoosiers who earn between 100 percent and 400 percent of the federal poverty level…a population he says is fairly wide:
“For example, up to 400 percent of the federal poverty level for a family of four – that’s 97 thousand dollars, roughly and some change.”
Harrison notes the tax credits will significantly reduce the individual costs– though only eligible Hoosiers who use the marketplace can receive the credits. For Indiana Public Broadcasting, I’m Brandon Smith.