Market Competition Works: Proposed Silver Premiums in the 2014 Individual and Small Group Markets Are Nearly 20% Lower than Expected

Source: Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation, July 18, 2013

HHS Secretary Kathleen Sebelius today released a new report that finds premiums in the Health Insurance Marketplace will be nearly 20 percent lower in 2014 than previously expected. The Affordable Care Act requires health insurers in every state to publicly justify any premium rate increases of 10 percent or more. Health insurance companies now generally have to spend at least 80 cents of every premium dollar on health care or improvements to care, or provide a rebate to their policy holders. In addition, when the Health Insurance Marketplace opens for enrollment on October 1, 2013 consumers will be able to make apples to apples comparisons of quality health insurance plans. “Today’s report shows that the Affordable Care Act is working to increase transparency and competition among health insurance plans and drive premiums down,” said Secretary Sebelius. “The reforms in the health care law ensure consumers will have access to better coverage at a lower cost in 2014.”