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Premium Prices
When people were able to access the Marketplaces, there was detailed information about the premiums for insurance products. One of the keys to whether the Marketplaces will work is if there is affordable coverage.
William Custer, director of the Center for Health Services Research at Georgia State University, said the premiums he has seen from Marketplaces across the country look “really affordable and are equal or less than what many people are paying now” for insurance on the individual market.
Federal tax credits to pay for premiums are a big part of that. For example, Custer said a person under 30 who is making $24,000 a year will receive about $200 a month in federal subsidies to pay for coverage.
Still, the price for insurance for many young people may be more than they are willing to pay. Custer said policies for those under 30 who are healthy are about 10% to 15% more expensive than what they can buy in individual insurance markets currently, but they will receive more benefits than are offered in most policies.
Holtz-Eakin thinks those higher prices will be a problem for getting healthy people to buy insurance. “The prices are bad news for the young and healthy,” he said.
Kathleen Doheny and Julie Edgar contributed reporting.
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