Consumers are finding lower costs and more options in many markets.
The term marketplace evokes the image of an active shopping space, one that offers something affordable and attractive for everyone.
That accurately describes the health exchange Marketplace, which for 2022 offered most consumers lower premiums for a third consecutive year. This one of five key findings from a joint report from the Urban Institute, funded by the Robert Wood Johnson Foundation (RWJF).
Report co-author and Urban Institute fellow John Holahan notes: "Several new factors affected insurers as they set premiums for 2022, including increased insurer competition and generous subsidies from the American Rescue Plan Act that increased the likelihood that healthy people would choose to buy coverage previously deemed unaffordable."
- A positive downward trend. Three years of lower premiums in most states bodes well for health plan competition and consumer cost predictability.
- As Marketplace premiums fall, employer plans rise. National benchmark premiums declined 1.8%—less than 2020's decrease (3.2%) but more than 2021 (1.7%) and better overall than 2021 employer-sponsored plan premiums, which rose 3.6%.
- State variability is also part of the story. The average monthly benchmark premium was more than $500 in 11 states but less than $365 in six (demographic: 40-year-old nonsmoker).
- Unemployment and competition were contributors. Regionally, higher unemployment was associated with higher premium increases while more health plan choices translated to lower increases.
- Health plan participation has nearly doubled. Marketplace stability continues, with 45% more payers offering plans in 2022 (288) versus 2020 (198).
These positive trends come as U.S. consumers confront rising inflation and interest rates.
Kathy Hempstead, RWJF senior program officer, affirmed the importance: "Three years of declining benchmark premiums combined with the American Rescue Plan provisions has been a win for Marketplace consumers, as evidenced by record enrollment."
Hempstead added the importance of continued subsidies and "rate discipline" to continue Marketplace access and affordability.
“Three years of declining benchmark premiums combined with the American Rescue Plan provisions has been a win for Marketplace consumers, as evidenced by record enrollment.”
Kathy Hempstead, RWJF
Laura Beerman is a contributing writer for HealthLeaders.
Photo credit: Portland, OR, USA - Mar 26, 2021: The homepage of HealthCare.gov, a health insurance exchange website operated under the United States federal government, is seen on a laptop computer. Tada Images / Shutterstock
KEY TAKEAWAYS
New factors affected insurers as they set premiums for 2022, including increased competition and generous subsidies from the American Rescue Plan Act.
These positive trends come as U.S. consumers confront rising inflation and interest rates.