Tags: Healthcare Reform | obamacare | premiums | decline | cities

Kaiser Study: Obamacare Premiums Likely to Decline in Major Cities

Friday, 05 Sep 2014 11:52 AM

With the second enrollment period for Obamacare looming, the benchmark premiums for health insurance plans are expected to decline in several major cities, a new study shows.

The survey by the Kaiser Family Foundation found that the premium for the second-lowest cost silver plan will go down by an average of almost one percent before tax credits, The Washington Examiner reports.

Kaiser analyzed the change in the prices of premiums for health insurance plans in 15 states and the District of Columbia, which have all filed comprehensive data on potential new rates for individual customers.

"The analysis examines premium changes for the lowest-cost bronze plan and the two lowest-cost silver plans in 16 major cities," said Kaiser researchers. "The second-lowest cost silver plan in each state is of particular interest as it acts as a benchmark that helps determine how much assistance eligible individuals can receive in the form of federal tax credits.

"Although premium changes vary substantially across and within states, premium changes for 2015 in general are modest when looking at the low-cost insurers in the marketplaces, where enrollment is concentrated," Kaiser researchers said.

"While the analysis provides an early look at how competitive dynamics may be influencing health insurance premiums, it is important to bear in mind that the overall picture may change as comprehensive data across all 50 states becomes available."

The Examiner noted that on the high end Nashville residents will have an 8.7 percent premium increase, while some people in Colorado will enjoy a 15.6 percent decrease.

The price of the new premiums will play an important role in determining how many people enroll or renew their Obamacare coverage this fall for their 2015 plans.

"How willing people are to switch plans will not only affect what they pay next year, but also how strong competitive forces are in the future and how much pressure insurers feel to keep premium increases modest," the researchers wrote, according to the Examiner.

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With the second enrollment period for Obamacare looming, the benchmark premiums for health insurance plans are expected to decline in several major cities, a new study shows.
obamacare, premiums, decline, cities
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2014-52-05
Friday, 05 Sep 2014 11:52 AM
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