CHA News Article

Report Analyzes 2017 Premium Changes and Insurer Participation in ACA Marketplaces

A report from the Kaiser Family Foundation examines the factors that will influence premiums in 2017 – including changes in insurer participation – and projects that premiums will be higher than in recent years. The report is based on initial data from 14 major cities but is subject to change as more information becomes available later this year. Based on insurer rate requests examined in the report, the cost of the second-lowest silver plan in these cities will increase by a weighted average of 10 percent in 2017. Last year, premiums for the second-lowest silver plans in the same areas increased 5 percent following review by state insurance departments. Premiums for 2017 are still preliminary and could be raised or lowered through the states’ rate review processes. However, the two lowest-cost silver plans are significant because they are the most common plan choices in the marketplaces, and the second lowest-cost plan is the benchmark used to calculate government premium subsidies.