An Early Look at Premiums and Insurer Participation in Health Insurance Marketplaces, 2014

Sep 05, 2013 | Cynthia Cox, Gary Claxton, Larry Levitt and Hana Khosla

With open enrollment in new insurance marketplaces set to begin Oct. 1, this analysis provides an early look at insurance premiums in 17 states and DC that have publicly released comprehensive data about their rates and the impact of tax credits that will offset part of the costs for low- and moderate-income families.

The analysis compares the premiums in the largest cities in each of the 17 states plus DC for individuals and families in different circumstances to illustrate the insurance rates they might pay, with and without the tax credits created under the law to make coverage more affordable. The 17 states plus DC include eleven operating their own marketplaces (also called exchanges) and seven that have defaulted to the federal government.

A wide range of premiums exist across the 18 cities, with tax credits varying based on enrollees’ income levels and the second-lowest-cost “silver” plan available in each market.  Eligible enrollees may use their tax credits to help pay for the silver plan or any other generally available plan in the marketplace, including the less generous (and less costly) “bronze” plan.

The analysis also provides similar state-by-state estimates for the cost of coverage for a 25-year-old and a 60-year-old, as well as the impact of tax credits on those rates.  It includes additional examples for a family of four and an older couple in each of the 18 cities:  Los Angeles, Calif.; Denver, Colo.; Hartford, Conn.; Washington, DC; Indianapolis, Ind.; Baltimore, Md.; Portland, Maine; Billings, Mont.; Omaha, Neb.; Albuquerque, N.M.; New York City, N.Y.; Cleveland, Ohio; Portland, Ore.; Providence, R.I.; Sioux Falls, S.D.; Richmond, Va.; Burlington, Vt.; and Seattle, Wash.



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