Public option may decrease commercial plan premiums, study finds

Introducing a public health insurance option into markets could lower premiums among commercial payers, according to a study published by the left-leaning Urban Institute, funded by the Robert Wood Johnson Foundation.

Advertisement

Researchers studied how the presence of a Medicaid insurer in a specific region affected premiums offered by commercial plans like Blue Cross Blue Shield, provider-sponsored plans, and other national and local commercial payers.

Researchers found a link between the presence of a Medicaid plan and commercial payers offering lower premiums, according to the report. Specifically, when researchers looked only at the lowest marketplace premium offered by non-Medicaid insurers, they found a 40-year-old consumer in a market with at least one Medicaid insurer could see a $38 reduction in monthly premiums compared to the average for non-Medicaid insurers.

“These managed-care organizations, though not purely public options, represent a proxy for them,” the researchers note. Later, they write: “Though we do not suggest our models are sufficiently comprehensive to assess whether the relationship between Medicaid insurer presence and non-Medicaid insurer premiums is causal, our results suggest a causal relationship.”

Read the full report here.

More articles on payers:
CMS sanctions UnitedHealthcare plan: 3 things to know
UnitedHealth posts $5B profit in Q3
UnitedHealth, Optum offer care + coverage under new package

At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 2–3 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.

Advertisement

Next Up in Payer

Advertisement

Comments are closed.