OCI Estimates Premium Increases

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OCI WI SealThe Marketplace or the federal health insurance exchange is scheduled to open October 1.  This quickly approaching deadline has many wondering what health insurance plans and premiums will look like in the new insurance marketplace on and off of the exchange.

While we are all still wondering about the exact figures, The Wisconsin Office of Commissioner of Insurance (OCI) did release estimates which shows premiums increasing

The OCI was able to provide initial analysis of rate filings in the individual health insurance market.  The chart below compares the cost increases for a $2,000 deductible that included drug coverage in the individual insurance market. They examined plans for a 21-year-old, a 40-year-old, and a 63-year-old. The rates were examined separately for Milwaukee, Eau Claire, Green Bay, Madison, Appleton, Wausau, Kenosha, and LaCrosse. The pre-reform plans are based on quoted rates effective July 1, 2013. Post reform plans are limited to plans from companies who have filed to participate in the federal exchange, and the averages will change if some insurers modify their service areas.

Percent Increase from Pre to Post 2014, Average Per Area
Age Milwaukee Eau Claire Green Bay Madison Appleton Wausau Kenosha LaCrosse
20 78.11 68.75 53.73 124.85 54.18 77.44 37.59 88.53
40 40.85 48.35 53.73 73.43 36.75 35.03 15.15 41.58
63 45.48 58.12 22.54 70.04 32.01 26.07 9.72 37.29

There is no way for anyone to give definite figures at this time because premiums will vary from one person to another and your premiums will be based off of a number of individual factors. To know for sure how much you have to pay you should reference the exchange when it is made public on October 1. Keep in mind that some customers will be able to receive a taxpayer-funded subsidy, which will counterbalance the actual premium being charged for low-income consumers.


Commissioner Nickel stated, “From our analysis, it appears premiums will increase for most consumers. And, while there is no question that some consumers will have subsidies and may not pay these higher rates, someone will pay for the increased premiums whether it is the consumer or the federal government.”

Keep in mind that the increases will not have the same kind of impact on every consumer or group. Each city will see their own kind of increases and it is hard to currently determine which ones will see the biggest rate increases. The chart above only includes information for plans that have filed to participate in the exchange. No comparisons have been done for the group market at this time.