Another Survey Shows Decrease In Obamacare Insurance Premiums For 2015

There is yet more good news on the Affordable Care Act. Rather than the “death spiral” which so many Republicans warned about, yet another study shows an average decline in health insurance premiums next year:

An early look at the cost of health insurance in 16 major cities finds that average premiums for the benchmark silver plan – the one upon which federal financial help under the Affordable Care Act to consumers is based – will decrease slightly in 2015.  The new study from the Kaiser Family Foundation analyzes premiums in the largest cities in 15 states and the District of Columbia where information from rate filings is available.

Premiums for the second-lowest cost silver plan for individuals will fall by an average of 0.8 percent from current levels in these cities when open enrollment begins on Nov. 15, according to the study. The analysis finds that the premium for the second-lowest-cost silver plan is decreasing in 7 of the 16 areas studied – but also that changes in average premiums will vary considerably across areas. They range from a decline of 15.6 percent in Denver, Colorado (to $211 per month), to an increase of 8.7 percent in Nashville, Tennessee (to $205 per month). In both cases premiums are for a 40-year-old nonsmoker, before taking into account any tax credit.  It is important to note that rate changes may be different in different rating areas in these states.

This is certainly a huge improvement over the double digit increases we typically had on insurance purchased on the individual market. Plus the new plans, as opposed to many previous plans sold, provide real, comprehensive coverage. Unlike any previous plans, they are available to anyone regardless of pre-existing conditions, and cannot be cancelled due to changes in health.

Incidentally, yesterday I also received details on the insurance I purchase to cover my employees which is being improved to become fully compliant with the requirements of the Affordable Care Act. It will cost me an additional $15 a month per employee. Of course for some reason I occasionally receive claims from Republican business owners that they are going to be forced out of business due to the higher cost of health insurance. I suspect that many American Republicans, due to their lack of understanding of how the economy works, and tenuous relationship with reality, are the worst businessmen on earth.

There is one caution in the news about a decrease in the premiums for the benchmark plans. These are used to determine government subsidies. The lower premiums mean that the government will have to pay less on subsidies than planned. However if people receiving subsidies fail to shop around, they are at risk of receiving lower subsidies than this year if they do not have a policy which matches the lower premiums.

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