ACA Premium Prices Released By The HHS – Who should be worried?

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September 25th, 2013

The Department of Health and Human Services (HHS) released a report citing the prices of ACA premiums before and after tax-credits. Premiums will vary by state and come into effect once the health exchange marketplace opens on Oct. 1st.

The report is a follow up to a previous study, that estimated state insurance premiums when the PPACA was originally passed. The HHS has used these figures to claim the average ACA premium will be 16% less than originally expected. However, compared to the current costs of insurance premiums, ACA premiums will see an average increase of 97% for men, and 62% for women purchasing coverage on the exchange.

The HHS offers reference figures showing the price of ACA premiums for a 27-year-old, and the average-aged exchange participant, a 40-year-old.

Amongst the plans available nationwide for a 27-year-old man or woman, there are increases as high as 279%; for a 40-year-old man or woman, there are increases as high as 305%. For those currently uninsured, they are expected to pay relatively low premiums, with almost 56% of uninsured individuals eligible for coverage under $100.

HHS-27-yo-men HHS-27-yo-women HHS-40-yo-men HHS-40-yo-women

Courtesy of Forbes.


While these comparisons were made without the application of tax subsidies, they highlight the impact the ACA will have on an individual’s insurance premiums. Subsidies will only be available to a select few and will do little to counteract the rises in premium prices that many Americans will face.

Amongst the 48 states included in the report, the HHS claims the average ACA premium for basic health coverage will cost $249 before tax subsidies. ACA premium prices are also expected to vary greatly according to state. For example, the average premium price of the cheapest Bronze plan is $144 in Minnesota, compared to $425 in Wyoming.

The report may provide Americans with a better idea of what to expect once the exchanges open, however it points to the more alarming fact that health insurance will not be as affordable as claimed under the ACA for some people.

Though the prices used in the report are still subject to change, who should be more concerned about the prices of ACA premiums? Younger, healthier, uninsured individuals will now have to pay the price for getting mandatory coverage. The elderly and sick will see the benefits of having regulated healthcare available at a set price. The middle-aged working individual may find themselves trapped into paying prices they once could avoid.

You can download the report published by the HHS here.