There could be a lot of confusion ahead for businesses as well as individuals when shopping for health insurance in Ohio. This article takes a look at some of these issues.
According to a report prepared for the Ohio Department of Health
Insurance, over 60 percent of Ohios residents get their health
insurance through their employers. However, Ohio Lt. Gov. Mary Taylor
says there could be a lot of confusion ahead for businesses as well as
individuals when shopping for health insurance in Ohio. Talyor, who is
also Director of the Ohio Department of Insurance, says that policies
could also become expensive, with higher premiums and new fees required
to run a state health care exchange. Ohio is one of the 19 states that
are still studying options to set up an exchange which, according to
law, is expected to be up and running by January 2014.
Health Insurance Exchanges Issues Involved
A
health care exchange is expected to be a place where lower-income
residents and small employers can shop for Ohio health insurance and
compare a variety of subsidized health plans. It is also expected to
give the state better control over the commercial health insurance
market, lower risk selection, and promote state health reform programs.
Policy makers also say exchanges will allow better coordination of
benefits and eligibility rules across health coverage programs such as
Medicaid and child health insurance plans available through them.
However,
setting up an Ohio health insurance exchange and ensuring that it
achieves intended goals will not be easy. Many issues would need to be
resolved.
Ohio, like other states, is struggling to balance
its budget, and a health exchange is an expensive proposition. Ohio Lt.
Gov. Mary Taylor released a report last year which showed that the
operating cost of a state-run from would amount to $19 million to $34
million per year.
Employers would face some confusion with
list-bill rating. As employees can choose from several health plans
offered by a single carrier, the groups premiums would need to change
from composite rating to list-bill rating. Under composite rating,
premiums are set on a group basis, and the rates would be the same for
all individuals and families. But under list bill rating, premiums would
be different for each individual and family that enrolls in coverage.
This complexity could affect the ability of the exchange to attract
employers.
Another issue that employers would face is how
they will deal with multiple insurers, ensure proper verifications on
employees, and protect themselves from penalties. This will involve many
administrative complexities and additional expenses for employers and
affect their purchase of coverage via the exchange. In the present
system, all this is handled through one health insurance Ohio company or through a broker.
Another important concern relates to getting the health exchange up
and running by 2014 and self-sustaining by 2015. According to Taylor,
this may mean that insurers or policy buyers have to pay new fees.
Health Insurance in Ohio – Important Role for Brokers
If
Ohio does indeed set up a health insurance exchange, the role of the
broker must be clearly defined. Individuals and business owners rely on
brokers to get quotes from various carriers, study their options, and
purchase quality health insurance OH. Therefore an experienced, licensed
Ohio health insurance
broker would have a major role in helping to resolve many of these
challenges
, especially in helping an exchange to attract and retain
customers.
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