As part of a campaign to educate the public about the Affordable Care Act, the Obama administration released an updated report about expected unsubsidized premiums available on the online healthcare exchanges.
Individual and family premiums, expected to be lower than first projections suggested, will vary by state and depend on several non-political variables, including estimated costs to the insurer:
- Level of coverage – plans range from Catastropic (limited coverage for extreme disaster situations) to Platinum (90 percent of costs covered), with sliding premium scales to match.
- Hospital charges – Areas with greater hospital mark-up on services will also feature higher premiums to offset costs.
- Competition between insurers – Some states, such as Ohio and Pennsylvania, will have as many as ten different insurers offering competitive rates. Consumers in other states and regions, like Alabama, will only be able to choose between one or two insurers.
Analysts advise that consumers look beyond the premium to consider the comprehensive benefits of the available plans before making a decision. In the case of a serious illness or injury, for example, a Silver plan with slightly higher premiums can keep long-term out-of-pocket costs lower.
Despite lower average premiums, a number of consumers will likely choose to pay the penalty rather than purchase insurance on the marketplace. The first-year penalty of $95 or one percent of taxable income may be less expensive for some consumers than the premiums available in their area – even after qualifying tax subsidies.
If you need to purchase individual or family coverage through the marketplace but have little available cash to afford the premiums, consider invoice factoring to close the gap. Factoring your company’s invoices can provide you with the cash you need to pay for healthcare without long waiting periods. Contact us to learn more and get started.