Factors Affecting Premiums In 2017 Individual Exchange Marketplace

by AHIP

May 9, 2016

Key Takeaways

Premiums_IssueBrief_Artboard-01Premium rates reflect many complex factors, and there is significant variation in rates across states and markets.

 

Premiums_IssueBrief_Artboard-02Affordability remains a top priority for enrollees with many consumers in this price-sensitive market selecting lower-cost coverage options.

 

Premiums_IssueBrief_Artboard-03Rising 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.

Background

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.