Obamacare premiums will see huge price variations
Some Americans looking to get health insurance through their state exchanges may be in for sticker shock.
The Affordable Care Act has something in common with real estate: It's all about location, location, location.
Health insurance premiums offered through state-run exchanges vary wildly, according to a new study from the Kaiser Family Foundation.
For instance, a 40-year-old single man living in Burlington, Vt., would be charged $413 per month for the second-lowest-cost silver plan, or about 70% more than the $242 it would cost if he lived in Washington, D.C.
The per-month figures, though, are before government subsidies, which will effectively lower the rate for many people. After the subsidies, rates for both D.C. and Burlington would decline to $193, the foundation found. The study looks at the 17 states, plus D.C., that have already released data on their rates.
The expense of health care insurance under the ACA has been a matter of concern for individuals and businesses worried about skyrocketing costs. Still, the Kaiser Family Foundation said that, on average, premiums are lower than expected.
Nevertheless, specific groups might get hit with higher costs. For instance, people in good health may see rates spike, according to a report earlier this year from The Wall Street Journal. That analysis said healthy people may find their premiums doubled or even tripled, while those with chronic conditions could see their rates decrease.
Without the ACA, a 40-year-old single man in Virginia could buy a plan for $63 a month through WellPoint (WLP), The Wall Street Journal found. But the lowest-price plan offered by Obamacare is more than double that -- $170 per month for a 40-year-old single man in Richmond, Va. -- according to Kaiser. After subsidies, that will decline to $110.
Subsidies will also bring down the cost for many families and individuals, although qualifying depends on people making less than 400% of the federal income level for poverty. That equates to $94,000 for a family of four.
The ACA prohibits insurers from basing pricing on demographic traits such as gender, or from banning people with chronic conditions. But pricing is also based on the promise that a pool of young, healthy consumers will join through the state exchanges, lowering overall costs.
Follow Aimee Picchi on Twitter at @aimeepicchi.
Those of us pulling the wagon are getting tired of everybody jumping on board. Some of you freeloaders are going to have to get out and start pushing. You can only spend other people's money for so long.
so peoples insurance is going to double in some cases. thats a 100% increase!
i thought it was going to save $2500 a year for people? still waiting for a news article where this is happening. you would think the media would be looking for those stories too but i guess there arent any. gee i wonder why?
"train wreck" hopefully america wakes up. obamas legacy isnt looking too good.
bwahahaha. enjoy paying those higher insurance bills middle class america.
you voted for it
Sure am glad I lived a healthy life and took care of myself so I can have the opportunity to pay for those that did not.
Eat right, exercise, didn't smoke, always kept health insurance.
What a waste of a life! Could have been having fun all along with the rest of the shlubs.
"we have to pass it to see what's in the bill..."
I'm still laughing.
i cant wait till people realize they will be forced to have insurance and the irs will be enforcing it. sure the educated already know this and those oppose obamacare.
the other 60%+ are clueless. cant wait till jan 1st! when they might finally wake up.
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A basic income policy can actually ensure a decent standard of living for everyone.
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