Insurance commision looking to the future ; Changes coming with ObamaCare, but cost is not yet settled [Florida Times Union]

ATLANTA | If the example one Georgia insurance company offered is true, the average family of five with middle-aged parents will pay about 45 percent more for medical coverage in October under federal health reform.

"I am very concerned that the full implementation of ObamaCare will drastically increase the price Georgians pay for health insurance," Insurance Commissioner Ralph Hudgens said.

But officials at the Georgia Department of Insurance aren't ready to offer any public conclusions while independent actuaries evaluate the plans and premiums that seven companies submitted in April. Hudgens has the power to reject rates he considers too high even though the federal government will operate Georgia's online exchange where the plans will be sold.

"Insurers cannot expect to hide behind changes in federal law as a pretext for boosting their bottom line," he said.

One company, Blue Cross Blue Shield Healthcare Plan of Georgia, included an example of the cheapest option under the federally prescribed plans. For the middle-aged couple (including one who smokes) living in Albany and their three children, the monthly premium is $1,605. The company now offers the same plan for $1,100, according to Georgia Health Coverage Inc., an independent insurance agency in Newnan.

The new plans will cover more situations, such as maternity, will have the same rates for men and women and can't charge more or deny coverage for anyone with a serious medical condition such as diabetes or cancer. So, it may be better to compare them to the plans offered to small companies, which also automatically accept all medical conditions, said Bill Custer, director of Georgia State University'sCenter for Health Services Research.

Custer reviewed all of the submitted premiums and concluded they're in line with or slightly lower than the existing small- group plans sold in Georgia.

"They're not necessarily cheaper. It depends on who you are," he said. "A younger person may actually pay more than they do now, and an older person will pay less."

Both the companies and the Insurance Department face a tricky time with the proposed premiums because many of the people who will be covered are not insured now, notes Graham Thompson, executive director of the Georgia Association of Health Plans.

"We're trying to figure out who is going to participate in the plans because Georgia has a large uninsured population," he said.

Of the seven companies, none are new to Georgia but one has only handled Medicaid coverage here. Not all intend to offer plans statewide, and they have cherry picked different regions of the state based on the lowest costs or the highest premiums.

Hudgens' staff said he is on schedule to complete his review in time to approve sales of the plans before Oct. 1 when the federal government will open the state's insurance exchange. Consumers will have until Jan. 1 to shop, either on the exchange or through an insurance agent. Those wanting help with the exchange will be able to get it free from a new type of federally-funded expert called a navigator, but Hudgens hasn't set licensing requirements.Walter Jones: (404) 589-8424