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Obamacare premium rates lower than expected
NEW YORK (CNNMoney)
The Obamacare premiums will cost less than predicted, according to data released Wednesday by the Obama administration.
The national average premium for the benchmark plan will be $328 a month before subsidies, 16% less than projected by the Congressional Budget Office. The benchmark is the second-lowest cost "silver" policy for 48 states, upon which federal subsidies are based.
The data also provided the first look for consumers into rates on the 36 federally run insurance exchanges. Prices vary widely based on one's age, income and state.
For instance, a 27-year-old living in Dallas making $25,000 could pay as little as $74 a month for the cheapest "bronze" plan after subsidies, according to the Department of Health and Human Services.
But a 60-year-old in Wyoming who makes more than $46,000 a year -- too much to get a tax credit -- could pay as much as $758 for a similar plan.
The majority of people uninsured today will be able to find a policy for $100 or less a month, taking into account subsidies and Medicaid eligibility, the administration said.
Consumers will be able to start enrolling in the exchanges on Oct. 1, with coverage beginning in January. Starting in 2014, nearly everyone must have insurance -- either through their jobs, government programs or the individual market -- or face a penalty.
Americans with incomes up to 400% of poverty are eligible for federal subsidies. So a 27-year-old making $25,000 a year will pay only $145 a month for the benchmark plan in all states other than Alaska and Hawaii, while a family of four earning $50,000 will have a $282 monthly tab.
Additional information, including the names of insurers offering plans on the federal exchanges and the deductibles and co-pays associated with the policies, has yet to be unveiled. The department just said that the number of plans ranges from 6 to 169, depending on the area. Consumers will have a choice of as few as one insurer and as many as 13, based on where they live.
In states where there are only a handful insurers, premiums are much higher, said Gary Claxton, vice president at the Kaiser Family Foundation. In the three most expensive states, Wyoming, Alaska and Mississippi, residents will only have a choice of two insurers.
Most people who sign up for coverage in the exchange, however, will be eligible for subsidies. The lower your income, the larger your subsidy. For instance, those making $17,235 a year will pay no more than 4% of income, or $57 a month, while those with incomes between $34,470 and $45,960 will pay a maximum of 9.5% of income, or $364 a month. The federal government will cover the rest.
Anyone earning more than $45,960 would be responsible for the entire tab on the Obamacare health plan of his choice.
Check out Kaiser's calculator to estimate your subsidy. See: http://kff.org/interactive/subsidy-calculator/
While the administration's report looks only at premiums, a health care advisory firm issued a report Wednesday saying that consumers in the exchange will face high out-of-pocket costs in the bronze- and silver-level plans. These policies have lower deductibles than gold and platinum plans, but carry higher cost sharing burdens.
The average silver plan will carry a $2,550 deductible and $30 primary care co-pay, while the typical bronze plan will have a $5,150 deductible and $39 co-pay, according to Avelere Health. The firm looked at policies in six states that have released detailed data.
http://money.cnn.com/2013/09/25/news/economy/obamacare-premium-rates/index.html?hpt=hp_t2
The Obamacare premiums will cost less than predicted, according to data released Wednesday by the Obama administration.
The national average premium for the benchmark plan will be $328 a month before subsidies, 16% less than projected by the Congressional Budget Office. The benchmark is the second-lowest cost "silver" policy for 48 states, upon which federal subsidies are based.
The data also provided the first look for consumers into rates on the 36 federally run insurance exchanges. Prices vary widely based on one's age, income and state.
For instance, a 27-year-old living in Dallas making $25,000 could pay as little as $74 a month for the cheapest "bronze" plan after subsidies, according to the Department of Health and Human Services.
But a 60-year-old in Wyoming who makes more than $46,000 a year -- too much to get a tax credit -- could pay as much as $758 for a similar plan.
The majority of people uninsured today will be able to find a policy for $100 or less a month, taking into account subsidies and Medicaid eligibility, the administration said.
Consumers will be able to start enrolling in the exchanges on Oct. 1, with coverage beginning in January. Starting in 2014, nearly everyone must have insurance -- either through their jobs, government programs or the individual market -- or face a penalty.
Americans with incomes up to 400% of poverty are eligible for federal subsidies. So a 27-year-old making $25,000 a year will pay only $145 a month for the benchmark plan in all states other than Alaska and Hawaii, while a family of four earning $50,000 will have a $282 monthly tab.
Additional information, including the names of insurers offering plans on the federal exchanges and the deductibles and co-pays associated with the policies, has yet to be unveiled. The department just said that the number of plans ranges from 6 to 169, depending on the area. Consumers will have a choice of as few as one insurer and as many as 13, based on where they live.
In states where there are only a handful insurers, premiums are much higher, said Gary Claxton, vice president at the Kaiser Family Foundation. In the three most expensive states, Wyoming, Alaska and Mississippi, residents will only have a choice of two insurers.
Most people who sign up for coverage in the exchange, however, will be eligible for subsidies. The lower your income, the larger your subsidy. For instance, those making $17,235 a year will pay no more than 4% of income, or $57 a month, while those with incomes between $34,470 and $45,960 will pay a maximum of 9.5% of income, or $364 a month. The federal government will cover the rest.
Anyone earning more than $45,960 would be responsible for the entire tab on the Obamacare health plan of his choice.
Check out Kaiser's calculator to estimate your subsidy. See: http://kff.org/interactive/subsidy-calculator/
While the administration's report looks only at premiums, a health care advisory firm issued a report Wednesday saying that consumers in the exchange will face high out-of-pocket costs in the bronze- and silver-level plans. These policies have lower deductibles than gold and platinum plans, but carry higher cost sharing burdens.
The average silver plan will carry a $2,550 deductible and $30 primary care co-pay, while the typical bronze plan will have a $5,150 deductible and $39 co-pay, according to Avelere Health. The firm looked at policies in six states that have released detailed data.
http://money.cnn.com/2013/09/25/news/economy/obamacare-premium-rates/index.html?hpt=hp_t2
Whether intentional or not (I suspect intentional) the insurance industry has made things so confusing it is almost impossible to figure all this stuff out.
I try and read what I can, but being 10 years away from medicare age obviously less of my focus goes into this area.
Even the new policies offered on the exchanges are absurdly confusing to do comparison shopping between the offered tiers. Shame they can't simplify the legalese of the policies so we could understand them.
Dee, I'm glad to see you are doing your research, makes those phone calls. You're already paying the salary of the person on the other end of the phone line, in a sense they are your employees.
Good luck
I try and read what I can, but being 10 years away from medicare age obviously less of my focus goes into this area.
Even the new policies offered on the exchanges are absurdly confusing to do comparison shopping between the offered tiers. Shame they can't simplify the legalese of the policies so we could understand them.
Dee, I'm glad to see you are doing your research, makes those phone calls. You're already paying the salary of the person on the other end of the phone line, in a sense they are your employees.
Good luck
Don't feel badly... The whole thing can be quite confusing and if I hadn't dealt with some of this stuff, with my late aunt, I wouldn't know it either; that, and the fact that we are being inundated with phone calls from insurance companies wanting to sell my husband a Medicare supplement.
Do your homework, but you should be able to find a reasonably priced supplement for your husband that will pick up most, if not all, the cost of medical care that Medicare doesn't pay. Also make sure he has some type of drug plan. Talk to your insurance agent (or company), or if your plan is through work, talk to the administrator. You can even talk directly to Medicare and they will tell you what's required for your husband.
Do your homework, but you should be able to find a reasonably priced supplement for your husband that will pick up most, if not all, the cost of medical care that Medicare doesn't pay. Also make sure he has some type of drug plan. Talk to your insurance agent (or company), or if your plan is through work, talk to the administrator. You can even talk directly to Medicare and they will tell you what's required for your husband.
Thank you for your quick response. I feel stupid. I did not know that people did this.
$1,000 a month? ARGH! I guess I should not complain about the $500
I was always told to keep my ins when Medicare kicked in but the costs are really killing us.
I see my life ins cost is as well.
I just looked at the "Obamacare" and it appears it would be much cheaper, based on our income for me to take it.
However I always thought my federal ins was the best to have.
I appreciate you helping me think outside the box as far as what coverage we need. It sure would save us a lot of money if I just got a single plan for me.
Have a great day
Dee
$1,000 a month? ARGH! I guess I should not complain about the $500
I was always told to keep my ins when Medicare kicked in but the costs are really killing us.
I see my life ins cost is as well.
I just looked at the "Obamacare" and it appears it would be much cheaper, based on our income for me to take it.
However I always thought my federal ins was the best to have.
I appreciate you helping me think outside the box as far as what coverage we need. It sure would save us a lot of money if I just got a single plan for me.
Have a great day
Dee
Typically, when one gets to Medicare, they drop regular insurance and get a Medicare supplement, which is much less expensive than regular insurance.
My husband and I are currently paying $1000/month to stay on the plan I had when I was working (we pay entire premium). My husband will go on Medicare in Jan, so I'll be able to drop him off my policy, which will be drop my premium, considerably. Open enrollment isn't until Oct, so he'll start looking for the best supplement.
Some insurance companies offer free supplements... check with AARP.
My husband and I are currently paying $1000/month to stay on the plan I had when I was working (we pay entire premium). My husband will go on Medicare in Jan, so I'll be able to drop him off my policy, which will be drop my premium, considerably. Open enrollment isn't until Oct, so he'll start looking for the best supplement.
Some insurance companies offer free supplements... check with AARP.
Hi if you don't mind me asking, is this a normal process? Once one gets to Medicare they drop the other insurance? I always thought you were supposed to keep both.
I am struggling with high insurance costs, due to disability my husband has Medicare and my ins as a back up.
With the costs getting so high (I am paying $500.00) I have been considering just getting a single plan however don't want to leave my husband in the lurch as I have heard Medicare doesn't pay for every thing.
I just tried to take a look at the "Obamacare" while prices are not up until 10/1 it looks as if the plan for us would be much cheaper than staying with my ins. Of course we have no idea what kind of coverage I was just trying it out on a system that is up and running now.
https://www.healthcare.gov/
Thanks for this post and all your answers, I am struggling with this.
Dee
I am struggling with high insurance costs, due to disability my husband has Medicare and my ins as a back up.
With the costs getting so high (I am paying $500.00) I have been considering just getting a single plan however don't want to leave my husband in the lurch as I have heard Medicare doesn't pay for every thing.
I just tried to take a look at the "Obamacare" while prices are not up until 10/1 it looks as if the plan for us would be much cheaper than staying with my ins. Of course we have no idea what kind of coverage I was just trying it out on a system that is up and running now.
https://www.healthcare.gov/
Thanks for this post and all your answers, I am struggling with this.
Dee
"But the monthly cost is higher than the $392 estimate in seven states, topping $400 in Alaska, Connecticut, Indiana, Maine, Mississippi, Vermont and Wyoming. The latter’s $516 price tag on the second-lowest-priced silver plan is nearly 32% higher than the forecast (see chart below)."
There after us both of us Brice!
http://www.marketwatch.com/story/the-50-states-of-obamacare-2013-09-27
There after us both of us Brice!
http://www.marketwatch.com/story/the-50-states-of-obamacare-2013-09-27
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