New Report Expects High Choice and Low Premiums in ACA Exchanges

The Department of Health and Human Services has published "Health Insurance Marketplace Premiums for 2014". The report states that:

"Individuals will have an average of 53 qualified health plan choices in states where HHS will fully or partially run the Marketplace... 

In the 36 states in this analysis, the number of qualified health plan choices available in a rating area ranges from a low of 6 to a high of 169 plans. On average, individuals and families will have 53 qualified health plans to choose from in their rating area... 

On average, there are 8 different health insurance issuers participating in each of the 36 Marketplaces included in this analysis...About 95 percent of the non-elderly population in these 36 states lives in rating areas with 2 or more issuers. Roughly one in four issuers is offering health plans in the individual market for the first time in 2014.

Premiums before tax credits will be more than 16 percent lower than projected.

The weighted average second lowest cost silver plan for 48 states (including DC) is 16 percent below projections based on the ASPE-derived Congressional Budget Office premiums. In 15 states, the second lowest cost silver plan will be less than $300 per month – a savings of $1,100 a year per enrollee compared to expectations. Overall, 95% of the uninsured potentially eligible for the Marketplaces live in states with average premiums below ASPE-derived CBO projected premiums (see Figure 1)."

For a complete copy of the report, click here.

New GAO Report Finds There is Still Much to be Done for State-Based Exchanges

The Centers for Medicare & Medicaid Services (CMS) are schedule to operate a health insurance exchange in the 34 states that are not setting up their own exchanges. CMS has indicated that it will carry out additional exchange functions for states are not ready. The Government Accountability Office (GAO) has found that: “CMS completed many activities necessary to establish FFEs by October 1, 2013, although many remain to be completed and some were behind schedule. CMS issued numerous regulations and guidance and took steps to establish processes and data systems necessary to operate the exchanges. The activities remaining cross the core exchange functional areas of eligibility and enrollment, plan management, and consumer assistance.”

The report also indicated that while a lot of work has been done, there is still a lot left. GAO stated “Much progress has been made, but much remains to be accomplished within a relatively short amount of time. CMS's timelines provide a roadmap to completion; however, factors such as the still-evolving scope of CMS's required activities in each state and the many activities yet to be performed--some close to the start of enrollment--suggest a potential for challenges going forward. And while the missed interim deadlines may not affect implementation, additional missed deadlines closer to the start of enrollment could do so. CMS recently completed risk assessments and plans for mitigating risks associated with the data hub, and is also working on strategies to address state preparedness contingencies. Whether these efforts will assure the timely and smooth implementation of the exchanges by October 2013 cannot yet be determined.”

A copy of the GAO report is available here.