MBR Take-Aways 
- The “silver plan” will cost an average of $328 a month for individuals across the US
- Prices were lower in states with more competition among insurers and higher in states with fewer players
- The Obama administration is counting on signing up 7 million Americans in the first full year of reform
On Tuesday, the Obama Administration released the first detailed look at premiums to be charged to consumers for health insurance bought on the new insurance markets mandated by the 2010 Patient Protection and Affordable Care Act. Information released on Tuesday is based on approved insurance plans in the 36 states where the federal government will operate the insurance exchange.
According to the data released, the “silver plan” will cost an average of $328 a month for individuals across the US. This benchmark plan will be the second lowest costing plan available, covering 70% of the projected medical costs for a typical consumer. There will also be a bronze, gold and platinum plan available, each with different levels of co-insurance. Prices highlighted by the administration show that the overall costs of health plans are lower than previous estimates. However, there are some additional factors to consider. Data has shown substantial price discrepancy among the states. For a family of four with an annual income of $50,000, the administration said, monthly premiums for the second-cheapest plan will average $600 in Arizona, $800 in Georgia, $961 in Indiana, $1,069 in Mississippi, $859 in New Hampshire, $943 in New Jersey and $656 in Utah. Part of this discrepancy is due to the different amount of plans offered in each state. States with the lowest average premium tend to have more insurance companies offering plans, the report said. It said eight issuers on average were selling plans in the states with average premiums in the lowest 25 percent, while states with average premiums in the top 25 percent had only three insurers on average. In addition, the Obama administration is counting on signing up 7 million Americans in the first full year of reform through the state exchanges, including 2.7 million younger and healthier consumers who are needed to offset the costs of sicker members.
Under the 2010 law, health benefits are supposed to be similar to those currently provided under a typical employer-sponsored plan. But the new policies will be more comprehensive than many now sold in the individual insurance market. Time will tell if health information exchanges will be able to lower the overall cost of health insurance while providing more coverage and access to its consumers.
