If you think health insurance coverage for you or your employees is out of reach, these numbers might surprise you. With discounts applied, the average cost for a health plan through HealthCare.gov was only $105/month, with 87% qualifying for a premium tax credit.
This is according to a new report by the Health Insurance Marketplace administration.
Here are quick highlights from the most recent Marketplace report.
Premium Tax Credits Reduce Marketplace Plans to $105/month
According to the Department of Health and Human Services (HHS):
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More than 8 in 10 individuals (87 percent) are eligible for a premium tax credit.
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Advance premium tax credits will reduce premium costs by over $1 billion a month.
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Almost 6.5 million individuals qualify for an average advance premium tax credit of $268/month.
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The average advance premium tax credit covers about 72 percent of the gross premium.
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The average net premium is $105/month among individuals with plan selections qualifying for an advance premium tax credit.
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Nearly 8 in 10 individuals (79 percent) had the option of selecting a plan with a premium of $100 or less after applying the advance premium tax credit.
2015 Marketplace Premiums By State
The new report also provides a breakout of plan selections and premium tax credits by state. According to HHS, the five states with the lowest average monthly premium, after the premium tax credits, are:
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Mississippi ($47/month)
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Georgia ($76/month)
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Missouri ($86/month)
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Florida ($88/month)
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South Carolina ($90/month)
The states with the highest average monthly premium after the premium tax credits are:
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New Jersey ($172/month)
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Delaware ($146/month)
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North Dakota ($145/month)
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West Virginia ($143/month)
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New Hampshire ($141/month)
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Oregon ($141/month)
Conclusion
If you think health insurance is too expensive for your family or your employees, think again. The average cost of individual health insurance in 2015 through the Marketplace is $105/month after premium tax credits are applied. And, the vast majority (87 percent), qualify for a discount.
Compare this to the average cost of health insurance purchased by an employer - $502/month -- and it’s easy to see why so many employers are switching to individual health insurance. Are you?
About the Report
The Department of Health and Human Services issues monthly reports on the federally-run Marketplace. The report represents data for the 37 states using the HealthCare.gov platform from November 15, 2014 through January 30, 2015. Data includes consumers who selected a new plan in 2015 or who were re-enrolled in a plan for 2015 coverage. Click here for the full report.
