Study: Women & Men, Young & Old Average Higher Premiums with Obamacare
Obamacare premium increases accompanied by elimination of rate-ups and application rejections as well as subsidies for some consumers
SUNNYVALE, Calif., Oct. 29, 2014 /PRNewswire-USNewswire/ -- HealthPocket examined the average health insurance premiums in the first year of Affordable Care Act (Obamacare) and compared them to the averages found in the pre-reform market it replaced. Premiums in the pre-reform and Obamacare individual health insurance markets were examined for nonsmoking men and women ages 23, 30, and 63 to determine if premiums were affected differently based on age and sex. HealthPocket found that the average health insurance premium increased by double digits for each group examined though some groups saw a much steeper increase than others.
Using government data for on-exchange and off-exchange individually purchased health plans in the two largest metropolitan regions in each state, HealthPocket calculated the average 2013 and 2014 premiums across all plans for each selected demographic profile. The largest increase was observed for young men age 23. The average premium across all plans increased 78% for 23 year-old men in the 2014 Obamacare market as compared to the 2013 pre-reform market. In comparison, 23 year-old women saw their average premium increase by nearly 45%. For 30 year-olds, the average premium increased 73% for men and 35% for women. For 63 year-olds who are not yet Medicare-eligible, women had a higher increase to average premiums than men. The Obamacare market's average premium for 63 year-old women was 37.5% higher than the pre-reform market while the increase for 63 year-old men was 22.7%.
The premium increases observed in the Obamacare market should be evaluated in the context of several factors, most notably the availability of premium subsidies for some portion of the public. However, as HealthPocket observed in a previous premium subsidy analysis, a significant portion of young people fail to qualify for subsidies despite their income due to the fact that the premium amount does not reach the percentage of income needed to trigger a subsidy.
"The market trend we observed was an increase in average premium and this increase may have been obscured to the press by the fact that the first Affordable Care Act health plans were new and had no prior history against which to declare a rate increase within their state filings," said Kev Coleman, Head of Research & Data at HealthPocket. "However, this increase in average premium must be viewed in light of the fact that under the Affordable Care Act some people receive subsidies and others do not face a premium rate-up or rejection due to an expensive pre-existing condition."
The full findings of the study and overview of its methodology can be reviewed in "Without Subsidies Women & Men, Old & Young Average Higher Monthly Premiums with Obamacare."
HealthPocket.com is a free website that compares and ranks all health insurance plans available to an individual, family, or small business to allow consumers to make their best health plan decision and reduce their out of pocket costs. HealthPocket uses only objective data from government, non-profit, and private sources that carry no conditions that might restrict the site from serving as an unbiased resource. HealthPocket, Inc., based in Sunnyvale, California, is an independently managed subsidiary of Health Insurance Innovations Inc (NASDAQ:HIIQ). Learn more at www.HealthPocket.com.
Kev Coleman, Head of Research & Data at HealthPocket, is available for interviews and commentary. To schedule an interview, please contact Ryan Hughes with Shirley & Banister Public Affairs at [email protected] or 703-739-5920 or by cell at 224-723-8688.
SOURCE HealthPocket
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