On Wednesday the U.S. Department of Health and Human Services (HHS) released a report compiled from state data which found that pre-tax credit premiums for consumers who purchase a health insurance plan through the health.gov marketplace will be significantly less than the previous Congressional Budget Office (CBO) estimate indicated.
The healthcare marketplace is an integral part of the Patient Protection and Affordable Care Act, aka Obamacare, and creates a place to shop for health insurance plans, giving consumers many more choices at far lower prices.
Specifically, the report stated, “The weighted average second lowest cost silver plan for 48 states (including DC) is 16 percent below projections based on the ASPE-derived Congressional Budget Office premiums.”
According to HHS, in 15 states consumers with the second lowest silver plan will realize a $1,100 yearly savings compared to the previous ASPE – CBO estimate.
ASPE is the HHS Assistant Secretary for Planning and Evaluation.
In addition, on top of the savings through marketplace competition, consumers will receive tax credits based upon household income and state of residence, driving consumer cost down further.
The reported also noted that in a 36-state study, the marketplace will provide to consumers on average 53 qualified health care plan choices with multiple choices in the bronze, silver, gold and platinum insurance coverage tiers, as well as the option of a catastrophic coverage option for young adults.
The 36-state study also found that premium prices will be lower in states with more transparency and more insurance companies competing in the marketplace.
In a White House blog on Wednesday Deputy Director of the White House Office of Health Reform Jeanne Lambrew remarked,
Nearly all eligible uninsured Americans (about 95%) live in states with average premiums below earlier projections. And nearly all consumers (about 95%) will have a choice of health insurance companies, each of which offers a number of different plans. Competition and transparency are driving a new set of affordable options for consumers -- it is how the law was designed. This new report shows the real impact it could have – a working a family with income of $50,000 could pay less than $100 per month for the lowest bronze plan, after tax credits.
