Health care advocates question insurance rates released by Walker

MADISON Health care advocates called into question information released Tuesday by Gov. Scott Walkers administration showing dramatic rate increases for insurance plans to be sold through the new marketplace created under the federal health care law.

The marketplaces, or exchanges, will be open for enrollment starting Oct. 1 with coverage beginning Jan. 1. They will offer small businesses, individuals and families a choice of private health plans, similar to what workers at major companies get, with subsidies for low-income consumers.

About 500,000 people in Wisconsin are expected to be shopping for coverage through the exchange, including about 92,000 currently on Medicaid who will be losing their coverage starting in January and 400,000 who have no insurance.

A month ago Walkers Office of the Commissioner of Insurance announced that 13 insurance companies would be offering plans to individuals through the exchange, but did not provide any details about rates or coverage areas.

On Tuesday, the insurance commissioner released an analysis showing what it said was the difference between what individual coverage will cost for a plan with a $2,000 deductible and prescription drug coverage currently and through the exchange. It did not examine costs in the group market.

The analysis looked at rates for individuals aged 21, 40 and 63 in nine Wisconsin cities. Rates would increase in all 24 of its scenarios, ranging from 9.7 percent for a 63-year-old in Kenosha to nearly 125 percent for a 21-year-old in Madison.

However, the analysis didnt take into account federal subsidies, which are expected to lower costs as much as 77 percent, or show the difference in benefits or co-pays.

I think theyve done nothing but confuse and mislead the public rather than give them serious information, said Robert Kraig, director of the health care advocacy group Citizen Action Wisconsin. These look cooked and theyre even hard to analyze because of the way they were released.

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Jon Peacock, research director of the Wisconsin Council on Children and Families, said not enough information was released to be of use to people who may be shopping for coverage through the exchange.

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Health care advocates question insurance rates released by Walker

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