By Ferdous Al-Faruque - 06/27/14 10:59 AM EDT
Lower-income people on ObamaCare are likely to face steep premium hikes next year to keep their current insurance, according to a new report.
The people most likely to take the hit are on lower-tier “silver” plans that provide basic health benefits at a low premium rate.
“Most enrollees in 2014 chose a plan based on the monthly premium. However, the lowest cost plans in 2014 may no longer be low cost in 2015,” said Elizabeth Carpenter, director at Avalere Health. “Before consumers renew their 2014 plan, they should consider the tradeoff between continuity of care and lower monthly premiums.”
Avelere looked at companies offering silver plans in nine states, and found that six of them were planning to increase prices.
Consumers on such plans generally get federal subsidies to help pay their premiums costs, but the higher premiums will lead to bigger out-of-pocket costs.
This doesn’t necessarily mean that all people on these plans will be stuck paying higher premiums.
Avelere said customers should seek to look for different plans that offer similar care but at cheaper rates.
It’s possible new companies will enter the marketplace in ObamaCare’s second year, and that they will set lower premium rates than the existing plans.
Avalere Health analyzed plans in nine states and found the cost of lower-tier silver plans will increase in Connecticut, Indiana, Maryland, Maine, Oregon and Washington.
Costs for such plans in Rhode Island and Virginia are expected to go down, while the cost in Vermont is expected to stay the same.