Tags: Health | insurance | obamacare | exchanges

eHealth Insurance Much Cheaper Than Insurance Exchanges

By    |   Wednesday, 26 Mar 2014 06:56 AM


Health insurance is demonstrating that the private sector is somehow able to price products at a significant discount to the government.

eHealth operates a web site where consumers can compare health insurance policies and select the one that meets their needs. It is similar to healthcare.gov in that way but eHealth does not offer subsidies. Consumers pay the full price of the policy.

All plans sold today comply with the Affordable Care Act minimum coverage requirements so it is possible to directly compare the two web sites.

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In a recent press release, eHealth noted the average premium for an individual health plan without a subsidy was $274 per month. This is up 39 percent from the average individual premium before Obamacare took effect. Family plan premiums averaged $663 per month, up 56 percent from a year ago before the law increased prices.

On the exchange, the average individual premium is $328 per month before subsidies, about 20 percent more than eHealth. Average family premiums through the exchange are $774 a month, according to The New York Times, or about 17 percent higher than the eHealth average.

There are many reasons health insurance could be more expensive through the government’s web site but subsidies could be one of the biggest contributors. With a subsidy, consumers feel like they got a bargain. We have seen a similar pattern unfold in higher education where government grants and loans lower consumer costs while the actual costs skyrocket.

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If college costs offer a model for the future of health insurance premiums, and with government subsidies they do, expect to see even higher insurance premiums in the next few years.

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MichaelCarr
Health insurance is demonstrating that the private sector is somehow able to price products at a significant discount to the government.
Health,insurance,obamacare,exchanges,
296
2014-56-26
Wednesday, 26 Mar 2014 06:56 AM
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