News of a double-digit hike in premiums for coverage purchased on healthcare.gov was announced recently. Do we really understand what this means? It is a bit more nuanced than just a blanket premium increase:
- The benchmark increases vary by percentage and by location w/some states such as Indiana, Ohio, and Arkansas seeing minor increases and in some cases decreases;
- States that expanded Medicaid coverage and those that did not grandfather transitional plans seem to have fared better overall in the marketplace;
- States whose insurers low-balled premiums to gain more market share were more often than not having to make drastic increases in premiums the following years to make up for often huge financial losses incurred from this gamble;
- Most enrollees will be shielded from the bulk of the premium hikes because they qualify for federal subsidies.
Read more here.