Ohio Insurance Premiums to Skyrocket

Forbes has the story:

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.”

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; Obamacare’s premium tax; and to pay a lot more if they’re young to subsidize older individuals.

The so-called “bronze” plan — the very minimum you’ll be allowed/mandated to buy — contains more benefits than many of the “Cadillac” plans Obama sneered at from 2008-2010. And if you and your family don’t need all those benefits? Well, too bad. Because Big Government couldn’t get Big Insurance on board with the new big, bold scheme without promising to shovel much more of your money at it.

So that’s precisely what they’re doing.

And thanks to the Supreme Court, you’re now the milch cow for whoever the next big, bold schemer turns out to be.