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In 2014, the health insurance landscape is going to change a great deal in Indianapolis.
There is going to be new taxes on group health insurance plans. For fully insured group plans, there will be a 2.68% tax on those plans. On self funded plans, there will be $6.35 per member per month tax. These are significant tax increases that will impact every Hoosier.
Small group health insurance plans are expected to have a have about 35% increases. This will impact about 45% of the current small group health plans negatively. The healthy groups will have the biggest increases where the unhealthy group may see a decrease. Community ratings will be one of the driving forces for these increases.
Individual and Family health plans are projected to go up 42%. This is a result of guaranteed issue. No Indianapolis resident can be declined coverage. We will also see an increase in covered services. The essential benefits and community rating will have a large impact on these policies.
There will be an established health insurance exchange. We will see a Federal Exchange in Indianapolis and we will see the launch of the private exchange model. Both exchanges models with have Federal subsidies.
There are predictions that one of the plans in the exchange would be premium free for those who qualify for subsidies. This is the Bronze plan with a 60% actuarial value.
With the health care reform it is projected that 35% of the uninsured in Indianapolis will have coverage.
There is real fear that we could see the erosion of the group health insurance model in Indianapolis.
