Last week, the U.S. Department of Health and Human services released data showing average premium rates in the federal health insurance exchanges. The initial data, albeit incomplete, confirms what the Texas Public Policy Foundation has long argued: premiums on the exchange will be significantly higher than pre-ObamaCare premiums in Texas.
Federal subsidies will offset higher premium costs for some people, but not everyone. Texans should be aware that depending on age and income, out-of-pocket costs for insurance plans sold on the federal exchange could be significantly higher than what is currently available on the individual market in Texas.
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Methodology: Pre-ACA monthly data from ehealthinsurance.com (accessed 9/16/13) are the average of the three cheapest plans available to a non-smoking male at each age in Austin, TX. Post-ACA monthly data from aspe.hhs.gov are the lowest cost catastrophic qualified health plan averages available to a non-smoking individual at each age in Texas for 26 rating area IDs. The percentage changes above the blue bars indicate the increase in monthly rates post-ACA.
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Methodology: Pre-ACA monthly data from ehealthinsurance.com (accessed 9/26/13) are the average of the three cheapest plans available to 27-year-old non-smoking men and women in each metropolitan statistical area (MSA) in Texas. Post-ACA monthly data from aspe.hhs.gov are the lowest cost catastrophic qualified health plans available on the federal exchange in each MSA.
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