Obamacare premiums look like they will increase modestly in 2015, at an average of 8 percent, according to an analysis released Wednesday based on publicly available information.
Avalere Health, an independent consulting firm, put out the report, which drew on initial 2015 premium filings in nine states. If the trend documented by Avalere holds, it would severely undermine the claims from Obamacare critics earlier this year that premiums would “skyrocket” in Year Two.
There was already isolated evidence that premium increases would be fairly tame, but Avalere’s analysis is the first comprehensive look at the public data currently available.
The increases will vary from state to state, Avalere found: from a 2.5 percent average in Rhode Island to 16 percent in Indiana. There also remains significant variation across states in flat price: The 2015 average in Oregon for a base plan is $272, while the average for the same plan in Vermont is $266.
Caveats do apply. Different states are having different experiences. It is also possible that the outlook could be different once other states release their filings, if they end up being significantly different than the trend in these nine states.
And premiums are going up. But it is difficult to connect those increases to Obamacare. As CNBC reported earlier this month, premiums in the individual market increased by an average of 10 percent between 2008 and 2010.
So as an early snapshot of the 2015 premiums, the Avalere report undercuts headlines from earlier this year that premiums would “skyrocket.” The analysis also does not account for the financial assistance available under the law.
Anonymous insurance executives warned that they might triple their rates in 2015. Some in the conservative blogosphere have sounded the same alarm. But it doesn’t look like those warnings have much merit — at least based on the early evidence.
What a handsome photo of our President. He lowers my BP just looking at him. Thank you Mr. President
“Anonymous insurance executives warned that they might triple their rates in 2015. Some in the conservative blogosphere have sounded the same alarm. But it doesn’t look like those warnings have much merit – at least based on the early evidence.”
Translated to read - lying GOPERs
Well, let’s see…hmmm…if next year insurance premiums will increase 10% but in 2008-2010 they were raised by 5% each year, then it would not be wrong to state that Obamacare contributed in one year for a 100% increase on the average annual increase.
When I was on BCBS in Arizona, coverage just for me alone, between 2005 and 2009, my premiums increased 10-15% every single year. They pretty much increased it as much as they legally could, citing cost increases despite record profits year after year. I went on my wife’s insurance in 2009 and my last premium w/ decent coverage under BCBS was somewhere around $260/month. I checked the ACA website last January to see what my premiums would be under a Silver plan and they ranged from about $190 to $250 depending on what provider and some coverage variables. I call that a big huge deal and a move in the right direction. Not perfect, but much much better.
Jeez, Dylan is hard to convince – as for me…I just considered the source.