Study: Health Exchange Premiums Lower Than Expected

Insurance premiums for coverage sold through the new health insurance exchanges are generally lower than expected, according to a Kaiser Family Foundation report.

The report examined data from the District of Columbia and 17 states that have publicly released premium rates. Using those rate filings, the researchers tracked insurer participation and plan offerings in the exchanges and calculated unsubsidized premiums for bronze and silver plans for 25-, 40- and 60-year-olds in the rating area of the largest city in each of the states and in D.C.

Fifteen of these 18 rating areas have premiums below the latest Congressional Budget Office projections, which suggest a $320 per month premium for a 40-year-old in the second lowest cost silver plan, according to the report.

The report backs up a study released last month by the RAND Corp. that found the Patient Protection and Affordable Care Act won't cause widespread increases in premiums on the individual insurance market. However, Minnesota, North Dakota and Ohio could see premium increases of up to 43 percent, according to the RAND report.

States where the federal government will facilitate insurance exchanges have predicted that premiums will skyrocket. Ohio forecasted premium increases averaging 41 percent for individual consumers purchasing coverage through the exchange.

Florida similarly predicted individual insurance premium increases of up to 40 percent, and Mississippi has stated individual health insurance plans sold through the federally facilitated exchange could cost three times as much as consumers currently pay for coverage. South Carolina has also forecasted a 50 percent to 70 percent increase in premiums for individual health plans and a 10 percent to 20 percent increase for small-group policies.

More Articles on Exchange Premium Rates:
Study: PPACA Won't Cause Premium Increases for U.S. Overall
California Exchange Launches Cost Comparison Tool
Nebraska Releases Proposed Exchange Premium Rates