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February 03, 2014 at 08:35 AM
For PPACA naysayers who believe the law is actually inflating costs for health plans, there’s a new report that says otherwise.
Premiums for health plans offered on the exchanges under PPACA are comparable to — and often times lower than — similar employer-based coverage, an analysis by consulting firm PricewaterhouseCoopers has found.
Researchers analyzed the national average premium for workers ($6,119) and compared it to the median and lowest rates for comparable coverage on the exchanges.
The median 2014 premium for an exchange plan with coverage similar to that of the average employer-sponsored plan was $5,844, and the cost on the exchange for the cheapest equivalent plan was $4,885.
“Across the board, at every level, average exchange premiums are lower than this year’s average premiums for employer-sponsored coverage,” the report states.
See also: How exchange plan woes could affect rates
Under PPACA, consumers shopping on the exchanges can choose from four levels of plans — bronze, silver, gold and platinum, which pay 60 percent, 70 percent, 80 percent or 90 percent of health care costs, respectively. Paying for about 85 percent of health care costs, employer-based coverage typically falls between a gold and platinum plan under PPACA.
“The average median premium for gold plans is 8 percent lower than the national average employer premium. When examining the average of the lowest premiums for gold plans the gap is 27 percent,” the firm said.
