The White House has received more than 120 applications from health insurance plans looking to sell on the new federal health care exchange, according to a White House memo released Thursday.
The success of the Affordable Care Act partially hinges on competition in order to keep premiums low, and, according to the memo, “the early signs are promising and demonstrate a significant increase in competition and an array of options for consumers everywhere.”
One out of four insurers that have applied to sell insurance in the marketplace is new to the individual insurance market and at least one new provider has been added in 75 percent of states with a federally run marketplace.
The White House estimates that about 90 percent of target enrollees will have five or more different insurance company choices.
People can start enrolling in the exchanges on Oct. 1. The federal government will fully run the health care exchanges in 19 states and will work with 15 other states to help them run a marketplace. Seventeen states (including D.C.) have opted to run their own exchanges.