HHS Study Shows Benefits of Shopping and Subsidies, but Costs Still a Concern Georgetown University Health Policy Institute As insurers selling on the Affordable Care Act’s (ACA) Marketplaces begin to file their 2017 rates with the Department of Health and Human Services (HHS), concerns over proposed increases will once again emerge. But a report released by the HHS Assistant Secretary for Planning and Evaluation (ASPE) demonstrates that behind the headlines about rate hikes, consumers are likely to see much more modest premiums after they have shopped around for the best deal and after subsidies are taken into account. Nonetheless, additional research released this week reminds us of more longstanding trends towards higher out-of-pocket costs that pose challenges for consumers, even as state and federal Marketplaces work to address these challenges. Premiums, Shopping, and Subsidies Data suggesting that seeking coverage through the ACA’s Marketplaces has once again about premium increases for Marketplace coverage. Of course, none of this is news, as the need to provide a path to coverage for those who were previously locked out of health insurance was for the ACA’s market reforms. Still, increasing premiums certainly pose a challenge for consumers and policymakers alike. But this week’s ASPE report demonstrates that proposed rate increases are only part of the story. ASPE’s data reminds us that the Marketplaces are structured to facilitate shopping around for the best value. In its analysis of the 38 states operating on the federal Marketplace platform, 43 percent of returning customers shopped around and selected a different plan. In addition, consumers can also qualify for subsidies through the Marketplace, and 85 percent of those with Marketplace plans received premium tax credits to offset the cost of coverage. ASPE reports that when subsidies are accounted for, the average monthly net premium increased by four percent between 2015 and 2016. Since the average net monthly premium after subsidies was $102 in 2015, this represents an average monthly increase of $4, for an average monthly premium of $106 in 2016. More than Premiums: Rising Out-of Pocket Costs Threaten the Value of Coverage But while ASPE’s research provides a more complete view of the way in which consumers experience Marketplace coverage, additional research released this week reminds us that premiums are not the whole story. In addition to premiums, consumers face additional costs in the form of copays and deductibles underscores the challenges that consumers
HHS Study Shows Benefits of Shopping and Subsidies, but Costs Still a Concern Georgetown University Health Policy Institute As insurers selling on the Affordable Care Act’s (ACA) Marketplaces begin to file their 2017 rates with the Department of Health and Human Services (HHS), concerns over proposed increases will once again emerge. But a report released by the HHS Assistant Secretary for Planning and Evaluation (ASPE) demonstrates that behind the headlines about rate hikes, consumers are likely to see much more modest premiums after they have shopped around for the best deal and after subsidies are taken into account. Nonetheless, additional research released this week reminds us of more longstanding trends towards higher out-of-pocket costs that pose challenges for consumers, even as state and federal Marketplaces work to address these challenges. Premiums, Shopping, and Subsidies Data suggesting that seeking coverage through the ACA’s Marketplaces has once again about premium increases for Marketplace coverage. Of course, none of this is news, as the need to provide a path to coverage for those who were previously locked out of health insurance was for the ACA’s market reforms. Still, increasing premiums certainly pose a challenge for consumers and policymakers alike. But this week’s ASPE report demonstrates that proposed rate increases are only part of the story. ASPE’s data reminds us that the Marketplaces are structured to facilitate shopping around for the best value. In its analysis of the 38 states operating on the federal Marketplace platform, 43 percent of returning customers shopped around and selected a different plan. In addition, consumers can also qualify for subsidies through the Marketplace, and 85 percent of those with Marketplace plans received premium tax credits to offset the cost of coverage. ASPE reports that when subsidies are accounted for, the average monthly net premium increased by four percent between 2015 and 2016. Since the average net monthly premium after subsidies was $102 in 2015, this represents an average monthly increase of $4, for an average monthly premium of $106 in 2016. More than Premiums: Rising Out-of Pocket Costs Threaten the Value of Coverage But while ASPE’s research provides a more complete view of the way in which consumers experience Marketplace coverage, additional research released this week reminds us that premiums are not the whole story. In addition to premiums, consumers face additional costs in the form of copays and deductibles underscores the challenges that consumers
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