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New Report Shows Premium Affordability, Competition and
Choice in the Marketplace in 2013-2014
Shoppers paid an average of $69 per month after tax
credits for silver plans and had, on average, a choice of
five health insurers and 47 plans
Special to The Truth
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A new report released last week by the Department of Health
and Human Services (HHS) finds that people who selected
silver plans, the most popular plan type in the federal
Marketplace, with tax credits paid an average premium of $69
per month.
In the federal Marketplace, 69 percent of enrollees who
selected Marketplace plans with tax credits had premiums of
$100 a month or less, and 46 percent of $50 a month or less
after tax credits. Last week’s report also looks at
competition and choice nationwide among health insurance
plans in 2013-2014, and finds that most individuals shopping
in the Marketplace had a wide range of health plans from
which to choose. On average, consumers could choose from
five health insurers and 47 Marketplace plans. An increase
of one issuer in a rating area is associated with four
percent decline in the second-lowest cost silver plan
premium, on average.
“What we’re finding is that the Marketplace is working.
Consumers have more choices, and they’re paying less for
their premiums,” said Health and Human Services Secretary
Sylvia Burwell. “Nearly seven in 10 consumers who signed up
for Marketplace coverage are paying $100 or less for that
coverage. When there is choice and competition, everybody
benefits.”
According to last week’s report, on average, monthly
premiums for people who selected plans with tax credits
fell 76 percent after tax credits, dropping the cost of the
average monthly premium from $346 before tax credits to $82
after tax credits across all plan types. People who
selected silver plans, the most popular plan type in the
federal Marketplace, with tax credits paid an average
premium of $69 per month.
The Marketplace is also providing consumers more easily
comparable, quality health plan choices than ever before. In
2014, there were a total of 266 issuers in the Marketplace
by state, offering over 19,000 Marketplace plans across all
ratings areas, excluding catastrophic plans. Overall, 82
percent of people eligible to purchase a qualified health
plan could choose from three or more health insurance
issuers and 96 percent could choose from two or more health
insurers in the Marketplace.
In 2014, new issuers represent almost 26 percent of all
issuers in the Marketplace, and the new Consumer Operated
and Oriented Plans (CO-OPs) tended to have lower premiums
than other plans. Early reports from the states suggest that
additional issuers will be entering the Marketplace in 2015.
Last week’s report demonstrates that the new tax credits are
working as intended to make premiums affordable, and the
Marketplace is bringing much-needed competition to the
insurance market. In addition, the Affordable Care Act
includes a number of other provisions to keep premiums
affordable. The rate review grant program provides states
with resources to enhance their rate review programs. HHS
has previously awarded nearly $238 million to states to
enhance their rate review programs, and, since the passage
of the law, the proportion of insurance company requests for
double-digit rate increases was cut by more than half.
Consumers saved nearly $1.2 billion on their premiums in
2012 when compared to the amount originally requested by
insurers. Health insurance companies also now have to spend
at least 80 cents of your premium dollar on health care or
improvements to care, or provide a refund. In 2012, 8.5
million consumers
received half a billion dollars in refunds – with the
average consumer receiving a refund of around $100 per
family.
To read last wek’s report visit:
http://aspe.hhs.gov/health/reports/2014/Premiums/2014MktPlacePremBrf.pdf
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