The effect of the Affordable Care Act on Californian’s individual health plan premiums will vary significantly according to members’ income level, according to a new report, the New York Times reports (Pear, New York Times, 3/28).
The report was developed by consulting firm Milliman and commissioned by Covered California, the state health insurance exchange (Sanders, “Capitol Alert,” Sacramento Bee, 3/28).
The report found that middle-income residents could see individual health plan premiums increase by an average of 30% and total health care costs increase by an average of 20% under the ACA.
However, families earning less than $60,000 annually could save up to 84% on premiums and 76% on total care costs with the help of federal subsidies, according to the report.
Researchers found that residents with annual incomes between 250% and 400% of the federal poverty level who currently are enrolled in individual plans will pay an average of 47% less when they have access to subsidies under the ACA (Terhune, Los Angeles Times, 3/28).
In addition, the report estimated that premium rates for individual health plans in California would increase by an average of 9% in 2014 without changes under the ACA (AP/Modern Healthcare, 3/29).
The report attributed overall cost increases to guaranteed coverage for sicker applicants under the ACA (Los Angeles Times, 3/28).
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