It’s official. Ohio Department of Insurance has reviewed the 2014 Obamacare plans and the average rate increase will be 41%. While this is not a surprise to agents who handle many states, this will be a shocker for Ohioans. Ohio has long had some of the most affordable coverage in the nation due to the many carriers and the ability for the carriers to manage their book of business as they wish.
Those days are over and now all Ohioans will pay a standard rate so people with pre-existing conditions can obtain coverage. However, there is some good news, a great deal of subsidy will available (watch the Obamacare Video for more information). The subsidy should limit your health insurance premium to 9.5% of your adjusted gross income, but that only applies to limited income levels. So for example a family of 4 earning $100,000 a year will be expected to pay $1,287 per a month, unless they opted for only 60% coverage which would put them at $1,050 per a month.
Suppose that same family is quite savvy and self employed and manages to lower the income down to $90,000. Then the rate would drop to about $750 a month. If you currently do not have an accountant, you may want to get one. Your health insurance agent and your accountant may be your best friend in 2014. While a good accountant will run you $500, a health insurance agent is free to work with as they are licensed with the state and appointed with the department of insurance.
If you are a family of four purchasing health insurance in Ohio and you income is more modest, like $45,000 a year, your plan will only cost around $300 a month. If you are an individual in Ohio and your income is around $45,000 your rate will be around $435 a month!
Obviously these numbers are all over the place, some good, some horrible, but the real questions to come are:
- Will Obamacare address Diabetes and Obesity in the US?
- Will Obamacare hand out Tier 2 and Tier 3 narcotics to people who are getting heavily subsidized insurance?
- Will Obamacare allow the contributors to get the same high level of care we are used to in our country?
And last but not least, will Obamacare make America a better place?
The only thing I know for certain, as an Ohio health insurance agent, I have a future in providing guidance through this system of land mines. As of 2014 the stakes get very high. A simple mistake like not contributing to a SEP or an HSA could cost you thousands of extra dollars in health premium. Cashing in a stock of mutual fund could have the same bad repercussions. Once again your health insurance agent and your accountant may be your best friend in 2014.