As health insurers file their proposed 2015 rates, premiums for health plans offered through the Patient Protection and Affordable Care Act exchanges have become the focus of a number of news stories and reports.
Here are five things to know about health insurance premiums under the PPACA.
1. Researchers and analysts agree premiums will go up for plans offered through the exchanges next year. A study released this week by healthcare business advisory company Avalere Health found average monthly premiums for silver-level plans will go up by 8 percent, based on initial rate filings in nine states. Meanwhile, a recent analysis by The Wall Street Journal of 10 states that have completed proposed 2015 insurance rate filings found the largest health insurer in all but one state plans to raise premiums by more than 8 percent.
2. Medical inflation — which is estimated to be 5.4 percent for insured people this year — is partly responsible for the rate increases, according to the Journal. Additionally, insurers have said fees and coverage mandates in the PPACA made it necessary to increase their rates.
3. Avalere's analysis found premium variation within states will likely increase as well. For instance, the proposed premiums in
4. Premium increases vary widely across different markets and states. For instance, the Journal analysis found proposed increases for the 10 states studied ranged from 8.5 percent for Anthem in
5. Still, it isn't clear yet whether the PPACA has caused a significant change in premium growth. A recent analysis conducted by Jonathan Gruber, PhD, an economics professor at the Massachusetts Institute of Technology, and published by The Commonwealth Fund showed individual health insurance plan premiums grew by 10 percent or more annually from 2008 to 2010, before the PPACA's major coverage provisions were implemented.
More Articles on Health Insurance Premiums:
Insurers Plan Premium Increases for PPACA Plan Enrollees
Health Insurance Premiums to Rise by 8% in 2015, Study Finds
10 States With the Highest Federal Marketplace Insurance Premiums