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Obamacare's Second Open Season: Average Premium Up 23 Percent, Even Counting Subsidies
National Center for Policy Analysis Health Policy BlogLink to more items from this source
Mar. 16, 2015
"Lost in the enthusiasm for Obamacare's new high-water mark are a few uncomfortable facts. First, the average premium -- net of subsidies -- has jumped 23 percent from 2014. In both years, insurers covering almost nine in ten Obamacare subscribers received subsidies to reduce premiums. The average monthly premium, before insurers receive subsidies, across all 'metal' plans, is $364 in 2015. The average subsidy is $263, resulting in a net premium of $101. In 2014, the administration reported an average premium of $346, less an average tax credit of $264, for a net premium of $82. Therefore, the gross premium increased 5 percent but the subsidy declined by a scratch. Due to the power of leverage, this resulted in subscribers seeing an average premium jump of 23 percent."

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