State health exchange rates expected to have low premiums, experts say
As state health exchanges begin to announce their premium rates for the Affordable Care Act-backed healthcare plans, experts are suggesting that the costs are much lower than expected. There are many factors that help determine the rates on a statewide basis – but, on average, uninsured citizens can expect to pay less under the provisions than they would've otherwise.
According to a report from USA Today, several factors come into play when determining the average premiums: the regulations in a given state, and how many insurers are participating in the exchanges, for example. However, there's expected to be massive shifts in prices once the bill takes effect. But overall, citizens have good reason to be happy about the findings.
"We know the rates are coming in lower than we expected," said Sherry Glied, a professor of health policy and economics at Columbia University. "They're coming in well below the Congressional Budget Office's estimated rates, which people thought were optimistic."
One of many options for the uninsured
These new rates apply to those who are currently uninsured. Those citizens will have a number of options to choose from for their health care, including flexible spending accounts and health savings accounts. However, the prices they pay will be determined by the state they live in.
"There is tremendous existing variation within the rates in the states now," said Glied. "It's hard to compare the old rates to the new."
According to statistics provided by the New York State Department of Financial Services, premium prices for "bronze" coverage in New York could range from $252 to $548 per month, showing that some will be subjected to increases of over 200 percent when compared to other plans.
*Note: Content provided is not intended as legal or tax advice.