ACA Expected to Deliver Lower Than Expected Premiums

Premiums in the health insurance marketplace will be nearly 20% lower in 2014 than previously expected, according a report released by  HHS Secretary Kathleen Sebelius. Proposed individual premium rates for 2014 are 18% lower than HHS’ previous estimates for the 10 states and the District of Columbia that HHS looked at.

In the six states that provided information in the small group market, proposed premiums are estimated to be 18% lower than for similar coverage without the Affordable Care Act.

Estimates are based on premium proposals for the lowest cost silver plan in the individual and small group markets. Actual 2014 premiums may be even lower when health plans are offered in the Marketplace this fall. Thanks to the rate review process and competition, a number of  states are reporting significantly lower rates than what was proposed earlier this Spring.

In 2014, the cheapest silver plan for a 25-year-old individual in Los Angeles County is $174 a month without a tax credit and $34 a month for an individual whose income is $17,235. Also, an individual can purchase a catastrophic plan for $117 per month.

Further, data from the Medical Expenditure Panel Survey reveals that the average premiums for employer sponsored insurance increased only 3% from 2011 to 2012, which the lowest increase since the data series started in 1996.

Since the health law’s rate review provisions were implemented, there has been a dramatic drop in the number of requests for insurance premium increases of 10% or more — from 75% to 14%. To date, the rate review program has helped save Americans an estimated $1 billion. For more information, visit

Last Updated 12/01/2021

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