ACA premiums rise, but subsidies protect consumers

Premiums on the federal Affordable Care Act exchange will increase in 2024, but the Biden-Harris administration has pledged that generous subsidies will ensure most consumers remain sheltered from rising costs. costs. According to the Centers for Medicare and Medicaid Services, the average monthly premium for the benchmark Silver plan in 2024 will see a 4% increase in the 32 states participating in the federal exchange, HealthCare.gov. This increase reflects the increase observed the previous year and marks a change from the four consecutive years of falling premiums that preceded it.

U.S. Department of Health and Human Services Secretary Xavier Becerra highlighted the administration’s commitment to affordable health coverage. “Millions of Americans have obtained affordable, high-quality health care coverage through the marketplaces,” Becerra said. He said everyone should visit HealthCare.gov to explore available health insurance plans and learn more about the options that best meet their needs.

“The Biden-Harris Administration has made it a priority to continue strengthening the ACA and build on its progress by reducing premiums for the millions of Americans enrolled in Marketplace coverage,” Becerra added.

CMS Administrator Chiquita Brooks-LaSure also noted the growth and strengthening of the ACA markets in recent years. She encouraged consumers to explore HealthCare.gov and their state-based marketplaces to preview plans and premiums before the open enrollment period.

Administration officials credited the Inflation Reduction Act with keeping eligibility requirements for health insurance coverage assistance and premiums stable for the third year in a row. The law allowed four in five HealthCare.gov consumers to get plans for $10 or less per month, thanks to expanded financial assistance.

Additionally, thanks to the Inflation Reduction Act and other reforms made by the Biden-Harris administration, more people who were previously ineligible for financial assistance can now qualify for lower premiums thanks to tax credits. This includes families whose employer-based insurance was too expensive and people with low incomes.

For the first time, the Marketplace app will include optional demographic questions related to sex assigned at birth, sexual orientation and gender identity. Officials added these questions to analyze health disparities in access to coverage to improve the consumer experience by allowing individuals to attest in a way that reflects and affirms their identity.

Consumers have the choice to answer, skip or indicate their preference not to answer one or all three optional questions. It is important to note that individual responses or decisions to skip these questions will have no impact on their eligibility results, plan price, or plan costs. Federal officials said they would protect the confidentiality of any information shared.

In 2023, 96% of enrollees who selected plans on the federal exchange during open enrollment were eligible for expanded subsidies. For current policyholders who remain within their coverage level, about two-thirds can find plans for less than $10 per month for the coming year.

Overall, four in five consumers will have the option to select plans on the federal exchange for $10 or less per month, providing cost-effective health coverage options for most Americans.
Almost all consumers will have access to at least three insurers, with on average just under seven options to choose from.

For those seeking assistance with the application process, the HealthCare.gov call center is available 24 hours a day, providing assistance in 200 languages. Additionally, consumers can find local assistants, agents or brokers in their area by visiting HealthCare.gov and selecting the “Find Local Help” option.

The marketplace open enrollment period on HealthCare.gov will run from November 1 to January 15. Those who sign up before midnight on December 15 (5 a.m. EST on December 16) will receive full annual coverage starting January 1, 2024.

Since January 15, 2024 is a federal holiday, the enrollment deadline will be extended to midnight on January 16 (5 a.m. EST on January 17) to allow consumers to sign up for coverage. Consumers who enroll after December 15 but before the January deadline will receive coverage beginning February 1, 2024.

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