May 9, 2016
Premium rates reflect many complex factors, and there is significant variation in rates across states and markets.
Affordability remains a top priority for enrollees with many consumers in this price-sensitive market selecting lower-cost coverage options.
Rising medical costs and prices, the phase out of the temporary premium stabilization programs, and ongoing risk pool effects in certain states add to the cost pressures in the Exchange market.
The purpose of this issue brief is to describe and assess the various factors that will impact individual Exchange marketplace premiums for the 2017 plan/benefit year. Premium rates reflect many complex factors and there is significant variation in rates across states and markets. And the impact of any rate increase will depend on an individual’s income (including whether they qualify for premium tax credits), geography, age, and other factors. Moreover, the impact of any rate increase also depends on individual’s coverage preferences and options available to them.