Report: ACA’s Effect on Insurance Premiums Varies by Income Level

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).

Report Findings

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).

Read more:   http://bit.ly/XVBb5a

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s