Insurance Commissioner John Doak at a news conference in Moore back in May. MATT BARNARD/Tulsa World File
OKLAHOMA CITY – Oklahoma Insurance Commissioner John D. Doak said Tuesday that Oklahomans should prepare to pay more for health insurance if they purchase it through the Affordable Care Act.
However Doak’s prediction of a 30 percent to 100 percent increase in health insurance rates under the new law does not take into account subsidies for which many consumers will qualify. People making from 100 percent to 400 percent of the federal poverty level -- $11,490 to $45,960 for an individual -- qualify to buy insurance under the law with reduced monthly premiums.
“Our fears have been confirmed,” Doak said in a news release. “For some consumers, the cost of health insurance will increase significantly. This is more proof that ObamaCare will hurt Oklahoma families and businesses. I continue to support Attorney General Scott Pruitt’s lawsuit to overturn this overreaching and potentially disastrous federal law.”
Pruitt has a lawsuit pending against the federal government over the law. Doak is among state officials who have been openly critical of the controversial federal law since its inception.
Doak’s release states that based on filings by insurers planning to offer coverage under the law,
“the Oklahoma Insurance Department (OID) has learned that health insurance rate increases in individual markets range from 30 percent to more than 100 percent.”
“These changes affect both new policies effective in 2014 and existing policies as they are renewed in 2014 and amended to conform to the law’s requirements.”
However the release also states that “individual consumers may not have to pay the full premium for health insurance due to federal tax credit subsidies.”
Under the law, individuals without health insurance may shop for coverage on websites called exchanges. People making from 100 percent to 400 percent of the federal poverty level can qualify for subsidies to buy insurance in the exchanges.
Kelly Collins, a spokeswoman for Doak’s office, said in an email to the Tulsa World that the agency did not compare the current rates to rates including subsidies.
“It’s basically impossible because you’re comparing apples to oranges,” Collins said.
National experts have said without including subsidies, comparisons of current rates to those under the ACA would not be accurate.
Organizations including the Kaiser Family Foundation, a nonprofit health policy organization, have cautioned against making such comparisons at all for a variety of reasons.
In addition to subsidies, rates for individuals under the law vary depending on age, geographical location and tobacco use.
The rates also depend on which company and plan consumers choose. There are four types of plans available under the law paying a portion of health care costs ranging from 60 percent to 90 percent.
As the World has reported, four companies plan to offer coverage under the Affordable Care Act in Oklahoma: Blue Cross and Blue Shield of Okahoma, CommunityCare, Aetna and GlobalHealth.
Doak’s release states the rate increases are due to a ban on annual or lifetime limits on health care costs; a list of required health benefits companies must cover under the law and various costs being passed on to consumers.
“From an actuarial standpoint, this confirms the obvious,” said Insurance Department Chief Actuary Frank Stone in the release. “Insurers must increase their premiums due to the additional requirements of ObamaCare.”
In addition to the increases forecast by the agency in individual rates, the release also states that rates for the small employee group insurance market will increase from 10 percent to 25 percent.
Oklahoma has about 700,000 uninsured residents, ranking behind four other states nationally in the number of people without health insurance.
