Health insurance premiums in Affordable Care Act marketplaces declined in most states in 2022 for a third straight year, while employer-sponsored insurance premiums increased, according to a new study from the Washington, D.C.-based Urban Institute.
The study was released April 12 and was funded by the Princeton, N.J.-based Robert Wood Johnson Foundation.
Nine key takeaways:
- Marketplace plan premiums decreased for the third straight year:
- 2022: 1.8 percent decrease
- 2021: 1.7 percent decrease
- 2020: 3.2 percent decrease
- Employer-sponsored plan premiums increased:
- 2021: 3.6 percent increase
- 2020: 3.9 percent increase
- Most states saw marketplace premiums decrease:
- Thirty-two states decreased.
- Eighteen states increased.
- One state remained the same.
- Eleven states had average benchmark premiums of over $500 a month for a 40-year-old nonsmoker.
- Six states had premiums less than $365 per month for a 40-year-old nonsmoker.
- Variations in the amount of increase in marketplace premiums were affected by two factors: higher unemployment rates and more payers in 2022
- The number of payers participating in the marketplace increased from 198 to 288 between 2020 and 2022 in the regions analyzed.
- The presence of Blue Cross Blue Shield payers, national and regional insurers, and provider-sponsored payers was associated with greater-than-average benchmark premiums.
- The presence of a Medicaid payer in a rating region was associated with lower benchmark premiums.
- The presence of one payer meant premiums were $189.50 per month higher on average compared to a market with five or more payers.
- Premiums were lower if the rating region was in a state that expanded Medicaid, had a reinsurance policy or had a state-based marketplace.