Obamacare Premiums Are Actually Lower in Many States
Introduction
Average costs for Obamacare plans are expected to drop in many states for the first time, while other states are seeing the lowest increases in years. ACASignups.net has tracked premium changes on the health insurance marketplaces since 2015. The website projects premiums to drop for 2024 by an average of $1 a month across the country.
Premium Changes
Biggest Drops
- Washington D.C.: Average premiums are expected to fall by $163 a month.
- Colorado: Premiums are projected to decrease by $131.
Biggest Increase
- Louisiana: Monthly premiums are due to rise by $71.
Image Description: Map showing changes in Obamacare premiums across different states.
Stabilizing Premiums
This is the second year of stable premiums on the marketplaces after years of double-digit percentage increases. "There's definitely some evidence that premiums are stabilizing," said Katherine Hempstead, senior policy adviser for the Robert Wood Johnson Foundation.
Why Are Premiums Falling?
In the initial years of the marketplace, many insurers set premiums too low, leading to financial losses and exits from the market. Now, with the market becoming more competitive, rates are coming down. For example, Nebraska had only one carrier until this year when Bright Health joined the exchange, leading to a $59 monthly drop in premiums.
States with Only One Insurer
- Delaware
- Wyoming
Image Description: Graph showing the stabilization of health insurance premiums over the years.
Enrollment Trends
Hempstead expects premiums to remain steady going forward. With more choices and better products, there is potential for enrollment growth. Enrollment in marketplace plans has remained steady for two years with a slight decline in 2019.
Employment Rate Impact
Enrollment in the individual market is sensitive to changes in the employment rate. If the economy falters and fewer people are covered by employers, more people may turn to the individual market.
Image Description: Chart showing enrollment trends in marketplace plans over recent years.
Cost for Unsubsidized People
Plans remain very expensive for people who don’t receive subsidies. The average monthly premium for 2024 is expected to be close to $600. Only 21.9% of people were aware that subsidies are available to buy Obamacare plans according to a recent Policygenius survey.
Signing Up This Year
Expect more choices than last year in both carriers and plans. If you need to take a specialty drug or see a specific provider, review each plan's network and drug formulary to ensure coverage. Open enrollment for the individual marketplace starts soon.
Image Description: Illustration showing the open enrollment period for health insurance.
Conclusion
Obamacare premiums are showing signs of stabilization, with many states experiencing lower costs for the first time. As the market becomes more competitive, consumers can benefit from more choices and potentially lower premiums. Make sure to explore your options and take advantage of available subsidies to find the best plan for your needs.