Consumers who purchase their insurance through the public exchanges will likely see prices rise again next year, according to a new analysis of proposed premiums for next year.
The Avalere Health analysis of 14 states where data is available finds that premium increases for average silver plans would go up by 11 percent. Lower-cost silver plans would increase a bit less, by 8 percent.
The average price of silver premiums for a 50-year-old male non-smoker would increase 11 percent to $508, according to the report.
Source: Avalere Health
Premiums on average plans are proposed to increase by more than 10 percent in nine of the states, with prices in Virginia going up the highest (19 percent). Rhode Island is the only state that will see a decline in the price of an average silver plan.
Avalere attributes the increase to lower-than-expected exchange enrollment, higher healthcare costs among enrollees, and the end of reinsurance and risk corridor programs that offset the cost for insurers.
The proposed increases don’t mean that all consumers will face higher costs. “Exchange consumers have been active shoppers who tend to re-shop each year and gravitate toward lower premium plans,” Avalere senior vice president Caroline Peason said in a blog post. “As in previous years, many enrollees will limit their premium increases by selecting plans with smaller premium increases and taking advantage of premium subsidies available in the market.”
Insurers must get state approval for any rate hikes, but an Avalere report from the same period last year found much smaller proposed premiums.