Some media outlets have highlighted costs for the absolute cheapest health plans available in Indiana in 2014 without any comparison to costs for similar plans prior to the ACA to portray the appearance of “affordability.” In fact, many “bronze” and “silver” plans will likely receive the sharpest percentage increases compared to similar health plans before ACA because younger and healthier Hoosiers will bear more of the cost shifting from senior and sicker Hoosiers. These younger and healthier Hoosiers are more likely to choose “bronze” and “silver” plans.
It is also important to note that these cost increases will occur regardless of who is actually paying the final bill. We acknowledge that many Hoosiers in the individual market will qualify for tax subsidies to purchase insurance in the federally run marketplace. The cost of these subsidies is not free, even to those that receive them. They will be paid in full by federal taxpayers.
ACA proponents have attacked the DOI for not including federal subsidies in our insurance cost projections, which would paint a prettier, yet unrealistic, picture of the law’s costs in Indiana. This is merely an attempt to distract Hoosiers from the actual insurance costs. The regrettable fact is that health insurance costs are going up because of the ACA.
Stephen W. Robertson
Insurance commissionerof Insurance