Costs of Health Insurance
What are the average costs of a health insurance?
That’s the question you would probably want to know the answer too. Generally, changes in the costs for health insurance are a significant agenda item in any discussion of health policy and health delivery. Roughly, the annual premiums average cost is $16,800 for a family due to the rising under-insurance and uninsured. These rising costs mostly impact employers especially for those Americans who are fully-covered. So read on to get the know more.
A study of the ACA health insurance costs found that, in the entire nation, marketplace premiums didn’t change upwards since the past two years. However, there were slight average premium declines in some states and increases in others.
In Georgia, for instance, the percentage premiums increase on the last two years was one percent for all plans and negative one percent for Silver plan. The 2016 premiums for a twenty-one-year-old nonsmoker in Georgia are as follows: $ 167 for Catastrophic; $201 for Bronze; Silver for $247; Gold for $291; and Platinum for $363.
Average Health Insurance Premiums.
The average premiums for the benchmark plan used for the calculation of the federal subsidy in a particular state remained stagnant.
In Georgia, from the year 2014 to 2015, there was a 2 percent increase in the premium for the benchmark silver plan in both urban and suburban areas.
The change for the same in the countryside was negative eleven percent, and the statewide average change was 1 percent. For, a forty-year-old nonsmoker, the premium for the benchmark silver plan is $ 255 in urban areas, $260 in suburban areas and $280 in the countryside.
There was also a tiny increase of 1% in the average deductible for a plan in the marketplace. In comparison with the historical trends in the employer-based health insurance and the individual insurance, the 0% change in the cost of health insurance premiums is unprecedented. Before the passage of the ACA, from 2008 to 2010, premiums increased at an average of 10% or more per year in the insurance market of every state.
For instance, from 2004 to 2009, the cost increased by 34 percent and 72 percent from 1999 to 2004. Premiums are also rising at a slower rate for smaller employers.
For businesses with 200 employees or more, on average the 2014 health insurance premiums were $17,265 which was 3.3% higher than in 2013. At institutions with three to 199 employees, yearly premiums in the year 2014 averaged at $15,849.
The stated figure was only 1.7% greater than in 2013 when the average health insurance premiums were 2.2% more than in 2012. According to the Kaiser report, premiums are not rising faster in the smallest businesses too, like those with 50 or fewer employees. Various factors result in the stability of this year’s premiums in the marketplace. The most important three factors are an increment in the number of insurance carriers; programs that stabilize the risk for the participating insurers; and the design of the marketplaces.
In addition to the average premiums not rising faster like before, the premiums also differ less from company to company.
Before Affordable Care Act was seconded, the premiums were based according to the age and the health of employees. Companies with healthier and younger employees could pay significantly less. By barring this practice and tightening age-based rate-setting, the act slightly increased costs for these enterprises. If a small business employs ten young and healthy workers, it’s possible that the premium the business pays have risen considerably, paying almost the same amount to another company hiring ten employees of an older age.