Maybe you’re looking forward to when Healthcare.gov works out its bugs, so you can find out how much you’ll save by buying health insurance from the federal exchanges. But you don’t need to wait. Drew Gonshorowski’s recent paper will give you an idea. According to the information available right now, you’re probably not going to pay less.
Gonshorowski estimates average premiums for plans that had been available in the non-group health insurance market and for plans that will become available through the ObamaCare exchanges and then compares the two. He estimates these premiums for adults age 27, adults age 50, and families of four in each state (except Massachusetts and Hawaii for which the data needed for the analysis are unavailable) and the District of Columbia. He finds the new Obamacare premiums will be higher than the old premiums in all jurisdictions except five. States such as New York will likely see decreases, explains Gonshorowski, because New York already had an over-regulated health insurance market.
The biggest increases for young adults (age 27) are in Arizona (157 percent), Arkansas (171 percent), Georgia (168 percent), Kansas (129 percent), Vermont (144 percent), and Virginia (253 percent). Also, in most states, the increases for young adults are bigger than the increases for adults age 50. That shouldn’t be surprising: ObamaCare’s regulations by design limit variability in premiums in order to create cross-subsidies from the young to the old. [“How Will You Fare in the Obamacare Exchanges,” by Drew Gonshorowski, The Heritage Foundation, October 16]
Find out how Obamacare will affect you, by checking the table below.[Click on the table to see a bigger version.]
For a less formal look at how health insurance premiums are changing, check out David Hogberg’s “Fun With Obamacare Exchanges” series at Amy Ridenour’s National Center Blog. So far he’s got posts on exchanges in Oregon, California, the District of Columbia [Part 2], Colorado, Idaho, Connecticut, as well as a post on the Federal exchange [Part 2].