The benefits of health insurance plans

Americans who buy health insurance plans under the Affordable Care Act could see steep premium increases in 2017, the highest since the 2014 roll-out of individual health insurance under the health law, a new analysis suggests.
However, enrollees in a few health insurance markets may actually see their premiums go down.
Premiums for some of the most popular "silver" plans could jump 10 percent, on average, across 14 major markets, the Kaiser Family Foundation reported. Rates for these silver health plans rose just 5 percent in these markets in 2016. Proposed premium changes vary widely across markets, from a 13 percent decrease in Providence, R.I., to an 18 percent increase in Portland, Ore., according to the report.
"We're definitely concerned about the possibility of large rate increases for next year," said Jesse O'Brien, policy director of the Oregon State Public Interest Research Group Foundation, a nonprofit consumer group.
"What this underlines is the need to do far more about the underlying drivers of health care costs in general than we have to date," he said.
Cynthia Cox, who led the analysis, said the proposed rate increases for 2017 mostly reflect underpricing of health plans in previous years, and the expiration of programs meant to keep the insurance markets stable in the first three years of the Affordable Care Act.
Some underpricing occurred because "people were sicker than expected or used more health care than expected," she explained.Plus, some insurers initially underpriced their health plans to attract more enrollees. "But I don't think they intended to lose as much money as they did," added Cox, the foundation's associate director of health reform and private insurance.
Silver plans are the most common health plan choices in the federal and state marketplaces that offer insurance under the Affordable Care Act, also known as Obamacare. These plans pay about 70 percent of consumers' health expenses, on average.
In each market, the premium for the second lowest-cost silver plan is used to determine the amount of financial help that consumers may be eligible to receive to pay their monthly health plan premiums. Subsidies are provided in the form of federal tax credits.
The Kaiser report examined insurers' 2017 rate requests, which are preliminary and subject to review by state or federal regulators.
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The benefits of health insurance plans

Americans who buy health insurance plans under the Affordable Care Act could see steep premium increases in 2017, the highest since the 2014 roll-out of individual health insurance under the health law, a new analysis suggests. However, enrollees in a few health insurance markets may actually see their premiums go down. Premiums for some of the most popular silver plans could jump 10 percent, on average, across 14 major markets, the Kaiser Family Foundation reported. Rates for these silver health plans rose just 5 percent in these markets in 2016. Proposed premium changes vary widely across markets, from a 13 percent decrease in Providence, R.I., to an 18 percent increase in Portland, Ore., according to the report. Were definitely concerned about the possibility of large rate increases for next year, said Jesse OBrien, policy director of the Oregon State Public Interest Research Group Foundation, a nonprofit consumer group. What this underlines is the need to do far more about the underlying drivers of health care costs in general than we have to date, he said. Cynthia Cox, who led the analysis, said the proposed rate increases for 2017 mostly reflect underpricing of health plans in previous years, and the expiration of programs meant to keep the insurance markets stable in the first three years of the Affordable Care Act. Some underpricing occurred because people were sicker than expected or used more health care than expected, she explained.Plus, some insurers initially underpriced their health plans to attract more enrollees. But I dont think they intended to lose as much money as they did, added Cox, the foundations associate director of health reform and private insurance. Silver plans are the most common health plan choices in the federal and state marketplaces that offer insurance under the Affordable Care Act, also known as Obamacare. These plans pay about 70 percent of consumers health expenses, on average. In each market, the premium for the second lowest-cost silver plan is used to determine the amount of financial help that consumers may be eligible to receive to pay their monthly health plan premiums. Subsidies are provided in the form of federal tax credits. The Kaiser report examined insurers 2017 rate requests, which are preliminary and subject to review by state or federal regulators. HealthDay