Dive Brief:
- As the enrollment period for health insurance through the ACA draws to a close Feb. 15, federal regulators announced numbers on Monday to help educate consumers who are still concerned about the cost. When tax credits are factored in, monthly premiums range from a low of $47 in Mississippi to a high of $172 in New Jersey, the Department of Health and Human Services says.
- The average monthly premium for health plans purchased on HealthCare.gov after tax credits is $105, the DHS says. That's actually an increase from last year's average of $82 a month.
- Nearly 6.5 million people currently qualify for an "advanced premium tax credit" that averages $268 per month on the federal exchange that serves 37 states.
Dive Insight:
Presenting the typical cost of monthly premiums with subsidies factored in is critical to educating potential consumers who may never have taken the step to determine their own cost. Some consumers lack sufficient education about the subsidies, while others may simply assume the cost would still be too high.
As Laura Adams, senior analyst with InsuranceQuotes.com, tells USA Today, "I don't think enough people know that the subsidies can really help them."
She notes that aside from needing to see the math, consumers need to understand that the tax credits go straight to insurance companies, so the health plan enrollees only pay the net premium after the subsidy is factored in. Seeing the average net premium can help consumers understand the true price they would pay and, as the feds hope, push them toward purchasing a plan.