Report: Iowans pay about $95 a month for healthcare after tax subsidies

Americans on plans eligible for 76 percent less than full premium

By Chelsea Keenan, The Gazette
Published: June 18 2014 | 12:01 am - Updated: 18 June 2014 | 5:25 pm in Business, Business Rotator, Government, News,

Iowans who signed up for private health insurance on the marketplace paid an average of $95 per month for silver plans after tax credits — $26 more than the national average, according to a Department of Health and Human Services report.

Additionally, 57 percent of marketplace enrollees who were eligible for tax credits had premiums of $100 a month or less, and 29 percent had premiums of $50 a month or less after tax credits.

The report, which analyzed data from the federally facilitated marketplace during the open enrollment period, found that, on average, monthly premiums for Iowans fell 69 percent after tax credits. This dropped the cost of the average monthly premium from $350 before tax credits to $108 after tax credits across all plan types.

Nationally, those who selected plans and were eligible for tax credits had a post-tax credit premium that was 76 percent less than the full premium — reducing their premium from $346 to $82 per month.

The report also highlighted the increased competition since the start of the marketplace. Nationwide, there were 266 issuers on the marketplace offering more than 19,000 plans across all ratings areas.

Overall, 96 percent of people eligible to purchase a qualified health plan could choose from two or more health insurers on the marketplace, the report found.

The Department of Health and Human Services said that new issuers represent about 26 percent of all issuers in the marketplace and Consumer Operated and Oriented Plans tended to have lower premiums than other plans.

Early reports from states across the nation suggest that additional issuers will be entering the marketplace in 2015.

On a conference call with reporters, senior HHS officials said they still are collecting data from states that are not on the federal marketplace.


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