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Small Business Employee Benefits and HR Blog

Consumers Paying Thousands More a Year for Non-Subsidized Plans

September 3, 2014
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Consumers who are not receiving premium tax credits toward their individual health insurance premiums are paying significantly more out-of-pocket for health insurance premiums. This is according to the recent, Out-of-Pocket Premium Analysis and Major Medical Inventory, published by eHealthInsurance.com.

The analysis used data from their May 2014 Health Insurance Price Index report and the Department of Health and Human Service’s Premium Affordability, Competition, and Choice in the Health Insurance Marketplace brief. Here are the findings of the analysis.

What Consumers are Paying for Premiums Out-of-Pocket

Across all levels of metallic tiers, consumers who qualified for premium tax credits paid an average of $82 per month. The average premium before the premium tax credits are applied costs $346 per month.

Consumers who did not use premium tax credits to help pay for their premium paid an average of $271 per month.average_premium_cost-1

Chart: eHealthInsurance.com

Additional findings about premium costs included:

  • More than two thirds (69 percent) of consumers who used premium tax credits paid less than $100 per month after the tax credits were applied.

  • Almost half (46 percent) of consumers who used premium tax credits paid less than $50 per month for health insurance premiums.

  • More than half (61 percent) of consumers who did not use premium tax credits paid more than $200 per month for health insurance premiums.

What Coverage Levels Consumers Are Selecting

Silver plans were the most popular among consumers who qualified for premium tax credits, while bronze plans were the most popular plan among consumers who did not use premium tax credits.average_premium_cost_by_metal

Chart: eHealthInsurance.com

After premium tax credits were applied, consumers paid an average of:

  • $68 per month for Bronze plans

  • $69 per month for Silver plans

  • $208 per month for Gold plans

  • $220 per month for platinum plans

Consumers who did not use premium tax credits paid an average of:

  • $259 per month for Bronze plans

  • $328 per month for Silver plans

  • $353 per month for Gold plans

  • $411 per month for Platinum plans

Read the full analysis at eHealthInsurance.com.

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