The new public exchanges have done a good enough job at controlling premiums to hold down 2014 federal health insurance subsidy spending.
Analysts at eHealth Inc., a Web-based health insurance broker, give that assessment in a look at PPACA individual exchange plan prices.
PPACA calls for the government to provide subsidies for eligible people with incomes of 133 percent to 400 percent of the federal poverty level who buy coverage through the PPACA exchanges in 2014.
Opponents of PPACA are still trying to block its implementation. Some have gone to court, for example, to argue that PPACA makes subsidies available only to users of state-based exchanges, not to the 36 state exchanges run by the U.S. Department of Health and Human Services.
If the PPACA subsidy program takes effect as written, the government is supposed to provide enough of a subsidy to keep a moderate-income consumer’s share of the premium for the “second least expensive silver-level plan” to 9.5 percent of taxable income.
That means that the consumer’s net cost for moderately generous, “silver-level” coverage should be less than 9.5 percent of taxable income.
A consumer could get a lower net premium by taking a cheaper, bare-bones, “bronze-level” plan.