When the highly anticipated Affordable Care Act online health insurance marketplaces, otherwise commonly referred to as exchanges, open Tuesday, many users may find costs to be lower than expected, government officials said.
The government now estimates that even before tax credits, premiums are expected to be 16 percent less than previous estimates. This should apply to the vast majority of Americans, according to a government news release from last week.
“We are excited to see that rates in the Ohio Marketplace are even lower than originally projected,” Secretary of Health and Human Services Kathleen Sebelius said in a news release. “In the past, consumers were too often denied or priced-out of quality health insurance options.”
Of all consumers, 95 percent are expected to have at least two choices for health care, with the same number of people expected to have lower average premiums than previous estimates.
An Athens family that makes $33,000 a year, about the median income countywide, with two 30-year-olds, two children and no smokers, would have several options.
Middle of the road coverage — branded as a “Silver” plan — would cost a little more than $1,100 annually, or $92 a month. That’s about 3.4 percent of the $33,000 income.
But, at that income level, residents might qualify for a government subsidy that would cover the entire premium costs of a Bronze plan, which offers less coverage. The co-pays and other out-of-pocket costs would be higher, according to a subsidy calculator through the Kaiser Family Foundation, a nonprofit focusing on health care reform.
These subsidies are only available for insurance purchased through the exchange, not through an employer.
According to their calculator, a Silver plan could pay for 94 percent of covered expenses, whereas a Bronze would only cover 60 percent.
Those who make between 100 and 400 percent of the poverty level will also receive a subsidy toward their insurance with amounts depending on exact income, location, and many other variables.
The average person will have 53 health care plans to choose from in the exchange, according to a release form Health and Human Services.
@LucasDaprile
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