The study, cited by NPR affiliate WITF, found that low-income individuals who enroll in individual health plans on the ACA exchanges pay less in parts of the country where one insurer holds the entire market share.
Researchers said the reason behind this lies in federal subsidies that qualifying individuals receive to offset the cost of insurance. The subsidy amounts are based on premium rates. So if premiums go up, individuals who get subsidies still pay less as federal subsidies rise to meet those rate increases.
This isn’t the case for individuals who purchase individual plans off the exchange and don’t qualify for subsidies, researchers note. For these consumers, insurer monopolies on the ACA exchange leave them worse off with higher premiums, according to WITF.
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