Marketplace Premiums and Insurer Participation: 2017-2020
Brief Jan-16-2020 | | 1-min read
In 2018 and 2019, the Affordable Care Act’s (ACA) marketplaces experienced considerable turmoil that resulted in huge swings in premiums, leading to concerns about stability and long-term viability. Additionally, there was fear that not enforcing the individual mandate would threaten the risk pool and force insurers to increase premiums to cover the additional risk. In this paper, researchers look at changes in the average lowest silver premiums from 2017 to 2020 by state.
Researchers say that most low-cost silver premium states had more competition. This was often created by the participation of at least one Medicaid insurer, several other non-Medicaid insurers offering plans, or the state instituting a reinsurance program—a reimbursement system that protects insurers from very high claims. States with higher-priced silver premiums typically had little competition.
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