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Study: Enrollees with subsidies to see premium increases next year

An analysis of next year’s premium rates for exchange-offered insurance benefits found those with subsidies could be paying more for healthcare coverage in 2015 if they don’t switch to new plans.

The analysis, which was conducted by Avalere Health, examined the premium rates already filed in nine states, and found the plans that cost the least during the first open enrollment period won’t be as affordable during the second. The report determined that since subsidies are tied to both income and benchmark plans, and there will be more competition this year, people could find themselves paying more for their healthcare coverage than they did this year.

Caroline Pearson, vice president at Avalere, suggested Americans be more attentive and savvy when they are looking at their insurance benefits options during the next open enrollment period.

“Consumers have to pay the difference if they enroll in a plan more expensive than the benchmark,” Pearson said. “Those receiving federal premium subsidies may need to switch plans in 2015 to avoid paying more than the limits established by the ACA, and the impact will be more profound for lower-income consumers.”

Kaiser Health News reported many people may not realize they should switch their plans, and some may simply choose to auto-enroll in their current plans to avoid having to go through the application process again.

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Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

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