Next year where will you get health insurance from?
Health Insurance will come from the same places that you are buying it from today. It may be delivered in a different platform. Currently you purchase health insurance from the individual market, employer sponsored group health plan, COBRA, HIP, Medicaid or Medicare.
In 2014, you purchase health insurance from the same places you get in now.
The individual market will be very different that what we have today. The big difference is going to be guaranteed issue. This mean there will no longer be medical underwriting to buy a individual health insurance policy. There is a segment of the population that is going to be very happy about this. We do predict that the cost of these plans are going to go up significantly. The cost of a Individual health insurance policy will resemble the cost of guaranteed issue group plan. Premium could go up 200%-300%. Now those policies are going to cover much more services like maternity and the essential health benefits.
Hoosiers will still have access to group health insurance on both small group and large. If your small group employer (under 50 employees) continues a group health plan then not much will change. We do predict cost on those plan could go up. This has to do with the new health care reform laws. These plans will continue to have guaranteed issue but with no underwriting. In Indianapolis we will have community rates. This could be a good thing for high risk groups. They could see their premium drop. Large group will continue to cover their employees. For a company to keep top talent they will be forced to continue to invest in health insurance. Some blue collar industries could entertain dropping coverage because the employees will GI in the Individual market.
Cobra coverage will continue to be an option for former employee. To this day people still don’t realize that COBRA is the coverage through the actual group health plan. The difference is that you no longer have the employer contribution.
HIP plans and other subsidized health plan may no longer be an option. Those Hoosiers would be have the option of buying health insurance through the Federal Health Insurance Exchange. The exchange plans may very well turn out to have better access to Doctors than prior plans.
Medicaid and Medicare people will still have that option on the table. Now it does not look like Indianapolis is going to expand medicaid coverage. This will force a lot of people to look at the www.indianahealthinsuranceexchange.com Federal Health Insurance Exchange for coverage. They would have to pay something for that plan but it may only be 1.5% of household income. Considering that plan could cost $20,000 a year that might be a good deal. There might also be tax credits available for medical claims. To the actuarial value of those plans could be in the 90% range.
If you would like to know more about options contact me.