Obamacare Premiums Vary By State

Phil Cohen

The Obama administration recently released a report about expected premiums available on the online healthcare exchanges. The report is part of a campaign to educate the public about the Affordable Care Act in defense against Republicans’ ongoing efforts to repeal it.

Many states’ premiums are reported to be lower than originally projected, great news for consumers. Individual and family premiums will depend on a number of factors, including the level of coverage they choose. Premiums vary by state but also by regions within a state, for several reasons:

  • Estimated insurer costs
  • Prices charged by hospitals and other facilities
  • Labor costs
  • Insurer competition

In some states, such as Ohio and Pennsylvania, as many as ten different insurers will participate in the health exchange and drive costs down; in other states and regions, however, only one or two insurers will offer plans.

Kaiser Family Foundation senior VP Larry Levitt remarked that there is no “political pattern” to explain differences in premiums between states. As a matter of fact, some states that have resisted implementation of the healthcare marketplace will nonetheless offer lower premiums than other states that have supported the Affordable Care Act.

While tax subsidies are available for qualifying consumers, some insurance agents still expect that a portion of the population will opt out of the marketplace and pay the penalty for not carrying insurance (the greater of $95 or 1 percent of taxable income for the first year) instead.

An important consideration when purchasing insurance through the marketplace is the comprehensive benefits available at each level of coverage. Though a bronze plan appear at first glance to be more affordable, these low-level plans typically come with higher deductibles and may result in greater out-of-pocket costs if the insured is injured or becomes seriously ill.

If you are required to purchase individual or family coverage through the marketplace but have little cash on-hand to afford the premiums, invoice factoring can provide you with the cash you need without waiting for tax subsidies or sacrificing the quality of your care. Learn more about invoice factoring and contact us for a quote today.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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