White House Analysis Reveals Lower Health Insurance Premiums

affordable-care-act-thumbAmericans who have feared paying high health insurance premiums in 2014 have just received a bit of good news from the White House. The Department of Health and Human Services (HHS) announced on Thursday that coverage offered by health exchanges under the Affordable Care Act is expected to be more affordable than originally projected.

Health Insurance Premiums More Affordable for Americans

An analysis released by HHS yesterday found that health insurance premiums in 2014 would be less expensive than previously projected. This was determined after examining the proposed, preliminary premiums of insurance plans to be sold under the health law next year.

The analysis found that individuals who purchase coverage under the lowest-cost, mid-level silver plan would pay an average of $321 a month, 18 percent less that previously estimated.

HHS noted that the estimated dollar amount for the silver plan does not include the tax credits many people are likely to receive under the Affordable Care Act that should help reduce the cost of premiums.

The current analysis is based on the most recent rate information made available by 11 states, which include California, New York, Vermont and the District of Columbia.

Affordable Care Act Health Exchanges Open Enrollment in October

[relatedposts]Individuals who plan to enroll in health plans from exchanges under the Affordable Care Act will be able to do so in October, according to HHS.

Insurance plans will fall into four tiers: bronze, silver, gold and platinum. Each will offer different costs and benefits, with bronze offering the least comprehensive coverage and platinum offering the most. A 25-year old in Los Angeles would pay $174 a month for the silver plan and $147 for a bronze plan, according to the analysis.

Individuals and families with incomes less than 400 percent of the federal poverty line (about $46,000 for an individual and $94,000 for a family of four in 2013) may be eligible for subsidies. HHS estimates that about 60 percent of people ages 18 to 24 will qualify for tax credits or Medicaid.

(Photo: Leader Nancy Pelosi)