Despite what some opponents of the Patient Protection and Affordable Care Act would have you believe, premiums have not increased dramatically for the average health care beneficiary.
A new study, conducted by the Urban Institute and commissioned by the Robert Wood Johnson Foundation, examined health plans offered in 20 states with individual PPACA exchanges and Washington D.C. It found that premiums for silver plans increased an average of 4.3 percent.
That's not to say that premiums didn't increase significantly in some instances. Indeed, the study found a wide variation between states.
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In six states included in the study, premiums actually decreased. In five states, premiums increased by less than 5 percent. They increased by between 5 and 10 percent in five states and increased by more than 10 percent in four states.
The highest increase came in Minnesota. The average silver plan in the Gopher State will rise 36.3 percent, while the least expensive silver plan will rise in cost by 24.4 percent.
States that will see larger increases in 2016 tended to have lower premiums in 2015, the researchers said. That suggests that insurers in certain markets more aggressively sought to gain market share through low prices and are now forced to raise prices to be profitable. Indeed, Minnesota's cheapest silver plan will cost $238 a month — still lower than the lowest cost silver plans in 16 of the other states examined in the study.
Indiana will see the largest decrease in premiums. The average cost of its silver plans will decrease by 10.7 percent. The cost of its cheapest silver plan will decrease by 12.5 percent, to $251.
"Premiums are the most important factor for the exchange customer," said Kathy Hempstead, who directs coverage issues at the Robert Wood Johnson Foundation. "While rates have not increased significantly in all markets, plans have changed in other ways, so consumers should shop carefully."
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