After months-long speculation that health insurance premiums would spike under Obamacare, new government data suggests that’s not the case. In fact, many individuals and business owners will likely find lower rates on the public exchanges than they can get on the private market today.
The Obama Administration just unveiled details about how much policies on the federal exchange will cost for residents of the 36 states that are relying on it. While the data is far from complete, it offers individuals and families a glimpse at how much they can expect to pay through the exchange. The issue brief says that 95 percent of all consumers will have premiums available that are less than previous estimates, and an average of eight insurers are participating in each of the 36 states’ marketplaces on the federal exchange.
For example, a 27-year-old in Florida will have access to policies ranging from $132 per month (catastrophic coverage) to $229 (cheapest “Gold” policy) on the exchange. (Rates are even lower if that 27-year-old qualifies for an income-based tax credit.) A family of four in Florida with $50,000 in household income will have access to “Bronze” and “Silver” plans on the exchange ranging from $104 to $282 a month after claiming the federal tax credit for lower-income families. A family that doesn’t qualify for the tax credit would be looking at premiums starting at $789 for a Silver plan.
However the premiums available on the exchanges will vary greatly by state, income and age. Minnesota, Arizona and New Mexico will have some of the lowest premiums, according to the government data, while Alaska, Maine and Connecticut will have some of the highest.
Small-business owners planning to look for coverage on the Small Business Health Options Program (SHOP) exchanges—which go live on October 1 in most states—have less of a preview available to them. However, some states have provided an early glimpse. Maryland officials reported that premiums from the 13 insurers offering policies on their state’s SHOP exchange will range from 5 percent less to 15 percent more than current rates.
The real eye-opener will come Tuesday when the exchanges open for business. Business owners will then be able to easily see how much insurance through the exchange will cost them and figure out whether it’s a better or worse deal than what they have today. Read my article with tips to help business owners navigate the exchanges.
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