As we reported earlier today
, there will be 71 plans available on the Health Insurance Marketplace
(HIM). Make sure to check out our post
outlining the big headlines from today's news.
Okay, so how much will these plans cost? Rates vary depending on where you live, your family situation, your age, and whether or not you smoke. They also vary depending on how much coverage they offer (bronze plans offer less for lower rates, gold plans offer more for higher rates).
As a reminder: these plans are for people who buy their own private health insurance. This does NOT apply to people who get insurance from their employer or through a public program like Medicare or the existing Medicaid program. The overwhelming majority of Americans
get health insurance through an employer or through a public program, so for all the noise, we're talking about plans for a very small portion of people (see infographic below).
For those shopping on the HIM, here's a big list of the rates
. The first thing you'll need to do is figure out which coverage region you're in.
The other thing to keep in mind is that most people shopping on the HIM will be available for subsidies that will reduce the sticker price you see listed on the big list of rates. You can use this handy calculator
to figure out whether you qualify for subsidies and how much that would offset the cost of your premium.
The Insurance Department provided these two examples to give an idea of the difference that subsidies can make:
For a 30-year-old individual in Arkansas, the average base premium of plans to be sold in the Marketplace will be $284.74 a month. Here are examples of how that premium will be divided
depending on annual income of the individual:
• $17,235 income: Monthly tax credit, $227.29; Monthly consumer payment, $57.45.
• $22,980 income: Monthly tax credit, $164.10; Monthly consumer payment, $120.65.
• $28,725 income: Monthly tax credit, $92.04; Monthly consumer payment, $192.70.
For two 40-year-old adults with two children, the average base premium of plans to be sold in the Marketplace will be $948.82. Here are examples of how that premium will be divided depending on the annual household income:
• $35,325 income: Monthly tax credit, $831.07; Monthly consumer payment, $117.75.
• $47,100 income: Monthly tax credit, $701.55; Monthly consumer payment, $247.28.
• $58,875 income: Monthly tax credit, $553.87; Monthly consumer payment, $394.95.
I know I keep repeating myself on the fact that the Health Insurance Marketplace
only applies to those that don't get insurance through an employer or a public program...but it seems to be one of the most misunderstood features of Obamacare. Conveniently enough, Jeff Young over at Huffington Post just put up a great post explaining this
. This infographic captures the situation well (after the jump):