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Report: tentative ACA premiums for Louisiana young adults and families of four
Written by  // Wednesday, 25 September 2013 12:13 //

HealthCareDebateThe federal government has released a report showing expected premiums on qualified health plans[3] in the 36 states in which the Department of Health and Human Services (HHS) will support or fully run the Health Insurance Marketplace in 2014, such as Louisiana.

 

The report analyzes the scenarios of premiums for young adults at age 27 and for families of four with income of $50,000.

On October 1, 2013, a Health Insurance Marketplace will open in each state, providing a new, simplified way to compare individual market health insurance plans. Americans will be able to use the Health Insurance Marketplace to shop for and purchase health insurance coverage, which will begin January 1, 2014. [1] In addition, individuals and families with household incomes between 100 percent and 400 percent of the Federal Poverty Level (FPL) who are not eligible for certain other types of coverage may qualify for tax credits to make premiums more affordable.[2]

This report summarizes the health plan choices and premiums that will be available in the Health Insurance Marketplace. It contains new information, current as of September 18, 2013, on qualified health plans[3] in the 36 states in which the Department of Health and Human Services (HHS) will support or fully run the Health Insurance Marketplace in 2014. Plan data is in final stages but is still under review as of September 18 and may be revised in HHS systems before being displayed for consumers, so this information is subject to change. This analysis also includes similar information that is publicly available from 11 states and the District of Columbia that are implementing their own Marketplace.[4] This report focuses on the plans with the lowest premiums in each state, as consumers are expected to shop for low-cost plans.

Nearly all consumers (about 95%) will have a choice of 2 or more health insurance issuers (often many more) and nearly all consumers (about 95%) live in states with average premiums below earlier estimates.[5] Other key findings include:

Individuals will have an average of 53 qualified health plan choices in states where HHS will fully or partially run the Marketplace[6]

· Individuals and families will be able to choose from a variety of bronze, silver, gold, and platinum plans in the Health Insurance Marketplace, as well as catastrophic plans for young adults and those without affordable options.[7] Health insurance issuers can offer multiple qualified health plans, including multiple qualified health plan choices within a single metal level. In the 36 states in this analysis, the number of qualified health plan choices available in a rating area ranges from a low of 6 to a high of 169 plans.[8] On average, individuals and families will have 53 qualified health plans to choose from in their rating area. Young adults will have an average of 57 qualified health plans to choose from, including catastrophic plans. The average number of choices will likely increase after including final data from state-based Marketplaces, which tend to have greater issuer participation.

· On average, there are 8 different health insurance issuers[9] participating in each of the 36 Marketplaces included in this analysis. This ranges from a low of 1 issuer to a high of 13 issuers within a state. About 95 percent of the non-elderly population in these 36 states lives in rating areas with 2 or more issuers. Roughly one in four issuers is offering health plans in the individual market for the first time in 2014.[10]

Premiums before tax credits will be more than 16 percent lower than projected

· The weighted average second lowest cost silver plan for 48 states (including DC) is 16 percent below projections based on the ASPE-derived Congressional Budget Office premiums.[11] In 15 states, the second lowest cost silver plan will be less than $300 per month – a savings of $1,100 a year per enrollee compared to expectations. Overall, 95% of the uninsured potentially eligible for the Marketplaces live in states with average premiums below ASPE-derived CBO projected premiums (see Figure 1).[12]

· Young adults will pay lower premiums and also have the option of a catastrophic plan that covers prevention, some primary care, and high costs in cases of major accident or illness.[13] The weighted average lowest monthly premiums for a 27-year-old in 36 states[14] will be (before tax credits): $129 for a catastrophic plan, $163 for a bronze plan, and $203 for a silver plan. More than half of the uninsured potentially eligible for the Marketplaces live in a state where a 27-year-old can purchase a bronze plan for less than $165 per month before tax credits. There are an estimated 6.4 million uninsured Americans between the ages of 25 and 30 who may be eligible for coverage through Medicaid or the Marketplaces in 2014.[15]

Premiums after tax credits

· Tax credits will make premiums even more affordable for individuals and families. For example, in Texas, an average 27-year-old with income of $25,000 could pay $145 per month for the second lowest cost silver plan, $133 for the lowest cost silver plan, and $83 for the lowest cost bronze plan after tax credits. [16] For a family of four in Texas with income of $50,000, they could pay $282 per month for the second lowest cost silver plan, $239 for the lowest silver plan, and $57 per month for the lowest bronze plan after tax credits.[17]

· After taking tax credits into account, fifty-six percent of uninsured Americans (nearly 6 in 10) may qualify for health coverage in the Marketplace for less than $100 per person per month, including Medicaid and CHIP in states expanding Medicaid.[18]

Premiums tend to be lower in states where there is more competition and transparency

· In the 36 states included in this analysis, states with the lowest average premium tend to have a higher average number of issuers offering qualified health plans. There are, on average, 8 issuers participating in the Marketplace in the states with average premiums in the lowest quartile, compared to an average of 3 issuers in states with average premiums in the highest quartile.

(See full report with annotations) 

 

Table 1: Premiums and Qualified Health Plan Choices, 36 States (Weighted average across entire state)

State

Average Number of QHPs[20]

27-Year-Old, Before Tax Credits

27-Year-Old with an Income of $25,000

Family of Four with an Income of $50,000[21]

Lowest Bronze

Lowest Silver

Lowest Gold

Lowest Catastrophic

Second Lowest Silver Before Tax Credit

Second Lowest Silver After Tax Credit

Lowest Bronze After Tax Credit

Second Lowest Silver Before Tax Credit

Second Lowest Silver After Tax Credit

Lowest Bronze After Tax Credit[22]

AK[23]

34

$254

$312

$401

$236

$312

$107

$48

$1,131

$205

$0

AL

7

$162

$200

$248

$138

$209

$145

$98

$757

$282

$112

AR

28

$181

$231

$263

$135

$241

$145

$85

$873

$282

$64

AZ

106

$141

$164

$187

$107

$166

$145

$120

$600

$282

$192

DE

19

$203

$234

$282

$137

$237

$145

$111

$859

$282

$158

FL

102

$169

$200

$229

$132

$218

$145

$96

$789

$282

$104

GA

50

$179

$208

$242

$142

$221

$145

$103

$800

$282

$132

IA

39

$139

$175

$203

$95

$189

$145

$96

$683

$282

$103

ID

42

$150

$182

$211

$134

$188

$145

$107

$680

$282

$144

IL

58

$134

$180

$210

$134

$188

$145

$90

$682

$282

$84

IN

34

$200

$258

$332

$168

$265

$145

$80

$961

$282

$46

KS

37

$130

$171

$192

$87

$171

$145

$104

$619

$282

$133

LA

40

$175

$235

$253

$142

$249

$145

$71

$902

$282

$15

Obamacare in Louisiana: Group tout lower costs, more options--not for poor

 

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