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Delivering on the Affordable Care Act: Marketplace Premiums Lower than Expected

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Delivering on the Affordable Care Act: Marketplace Premiums Lower than Expected

By ngoriel, SBA Official
Published: September 25, 2013 Updated: October 4, 2013

Note: This blog is by Jeanne Lambrew, Deputy Assistant to the President for Health Policy and first appeared at WhiteHouse.gov on September 25, 2013.

At the center of the Affordable Care Act is the premise that we need to make health care more affordable and accessible for more Americans, and a new report released today demonstrates just how affordable insurance will be. The report, released by the Department of Health and Human Services (HHS), finds that in state after state, affordable options will be available through the Health Insurance Marketplace in 2014. 

Nearly all eligible uninsured Americans (about 95%) live in states with average premiums below earlier projections.  And nearly all consumers (about 95%) will have a choice of health insurance companies, each of which offers a number of different plans.  Competition and transparency are driving a new set of affordable options for consumers -- it is how the law was designed.  This new report shows the real impact it could have – a working a family with income of $50,000 could pay less than $100 per month for the lowest bronze plan, after tax credits.

The Marketplace will be run in partnership with States or fully by the HHS in 36 states. In these states, on average, consumers will have a choice of 53 health plans (bronze, silver, gold, and platinum plans).  Young adults will have the additional option of low-cost catastrophic or youth plans. And, about one in four of these insurance companies are newly offering plans in the individual market, a sign of healthy competition. 

And competition is helping to lower costs. States with the lowest premiums have more than twice the number of insurance companies offering plans than states with the highest premiums. In the 48 States (including the District of Columbia) where premiums are available, the average premium for the lowest cost silver plan in the Marketplace is more than 16 percent lower than projected. 

Premiums are even lower for workers and families qualifying for tax credits. For example, in Texas, an average 27-year-old with income of $25,000 could pay $83 for the lowest-cost bronze plan, $133 for the lowest-cost silver plan, and $145 per month for the second lowest-cost silver plan after tax credits.  For a family of four in Texas with income of $50,000, they could pay $57 per month for the lowest bronze plan, $239 for the lowest silver plan, and $282 per month for the second lowest-cost silver plan.

And based on the law’s provisions (the premium tax credit and Medicaid expansion), nearly 6 in 10 of the uninsured will pay $100 or less per month for health coverage.

Download the full report here, or for information by state, go to wh.gov/healthreform/map.

In less than a week, the new Marketplace will be open for business. From October to March 2014, more Americans will be able to check out their choices at HealthCare.gov and find health plans that fit their lives and their budgets.

For more information, go to HealthCare.gov.

About the Author:

Natale Goriel

SBA Official

Hi, my name is Natale and I'm serving as a Moderator for the SBA Community. Our goal is to continually improve this site to meet your needs, so we appreciate your feedback and participation.

Comments:

If you are a veteran then the local veterans hospital has you covered and you don't need insurance. They sent me a letter and told me not to worry about the obama care insurance.
Everyone needs a good health insurance plan. Even if you're young or old, health insurance benefits those of all ages. It can be hard to determine what kind of health insurance you should get, and you might not know what to look at. The tips below are sure to help you find the best health insurance your money can buy. Make sure you understand what your policy covers before singing up. Choosing a policy that covers what you need is the best way to get your money's worth. This is why understanding how insurance works is so important. Individual policies are usually more expensive than group policies. You may find yourself needing to plan for a higher deductible or reduced coverage to bring your policy cost down. Get a number of quotes to find the best policy and rates.
There's a lot more to quality healthcare than health insurance - and I'm afraid Obamacare is exposing more Americans to some of the often fatal flaws of our broken healthcare system. Better access to healthcare isn't always a good thing - not when you have a healthcare system riddled with corruption, ineptitude (a 31% efficiency rating) and dangerous unnecessary care contributing to up to 440,000 avoidable deaths every year. In that context, smart Americans learn how to be more cautious medical consumers no matter how good their insurance may be.
Is there a reason why comments that are on topic and are legitimate concerns about Obamacare are being deleted? Just curious.
My insurance is going from 323 a month on BCBS (with a great plan) to 922 on a Bronze plan, I am a small business owner, and everyone in my referral group is experiencing the same thing. If this is "lower than expected" .......
Interesting. A negative comment about ACA that hasn't been deleted from this blog. You story is typical of what I'm hearing and seeing from people I know as well.
I haven't heard of anyone who has purchased a less expensive policy on the exchange.
The issue of health problems is always necessary and urgent that every country needs special attention is the beauty. a country with more favorable policies for children and the elderly. I hope everything will be solved most satisfied.
I completely enjoyed the post and hope more post from you soon.Thank you!!!
Great article, provide useful information.

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