HC Statistics Health Insurance Health Reform

Obamacare premiums rose 32% in 2018

Between 2017 and 2018, premiums Obamacare health insurance plans plans rose by 32%.  To be more specific, the Urban Institute reports that:

The national average increase was 32.0 percent for the lowest-priced silver plans and 19.1 percent for gold plans, but the increases varied by states…State changes in average lowest-priced silver premiums ranged from a 22.5 percent reduction (Alaska) to a 117.5 percent increase (Iowa). Lowest gold plan premium changes ranged from a 27.9 percent reduction (Alaska) to a 62.1 percent increase (Kentucky).

Silver plans are those that cover 70% of actuarial cost, whereas gold plans must average 80% coverage of medical costs.

Unsurprisingly, there was some regression to the mean.

Some of the smallest increases (including some decreases) were in states with high 2017 premiums.

And the long-run prospects for the Obamacare individual market are not trending in a positive direction.

More insurers exited markets than entered new markets in 2018 in our study areas.

Where I live (Los Angeles), premiums largely followed the national trend with average silver plan premiums rising by 26.9% and premiums for the lowest silver plan rising by 32.4%.  Of note was that Anthem existed the entire Southern California market in 2018.


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