Forecasts are beginning to show that the costs of the coverage aren’t as high as predicted.
According to data from the Department of Health and Human Services, the cost of health insurance is considerably lower than it anticipated for small businesses and consumers, as the healthcare exchanges start to come together.
This is promising news for President Obama and his supporters, as the exchanges are the heart of his signature law.
The health insurance exchanges in each state are central to the Patient Protection and Affordable Care Act. Their ultimate success will likely depend on the costs associated with the “silver plans” that are being sold with premiums in the mid-range area. It is those plans that are expected to draw the largest number of consumers.
The data from 10 state health insurance exchanges and the District of Columbia are indicating lower premiums.
A Department of Health and Human Services report is now stating that the premiums for 2014 based on the data from 10 states and Washington D.C. are showing to have mid-range silver plans that have the lowest cost within those marketplaces. In fact, on average, they are 18 percent less expensive than had previously been predicted by congressional and administration estimates.
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The rates that will be available to small businesses that have fifty or fewer employees that purchase small group health insurance coverage through these exchanges is also proving to be 18 percent lower than what the plans would cost if they were purchased outside the healthcare reform. This HHS data was based on data that has been submitted by six states.
The report was released by the HHS in conjunction with President Obama’s speech on the topic of the way that the health insurance law has already been providing Americans with benefits. It appears to be the most recent step being taken by the administration to counter the allegations that have been made by Republicans that imply that consumers and businesses will experience considerably higher costs from the exchanges than what was already available on the market before the exchanges were created.
The new health insurance exchanges are expected to start enrolling up to 7 million Americans who are currently uninsured, in order to provide them with the required coverage for 2014. The enrollments begin in October 2013.