Myths About Marketplace Premium Rate Increases


As a broker, we are committed to finding the best value for our clients. When it comes to Marketplace coverage, you should know that premium rate changes DO NOT reflect what most consumers will actually pay. Think about this useful information when considering Marketplace coverage:


Less than $75 for ACA (Obamacare plans)

  • Most Marketplace consumers will be able to select a 2017 plan for less than $75 per month.
  • Last year, the average cost of Marketplace coverage for people getting tax credits went from $102 to $106 per month, a $4 change, despite suggestions of “double-digit price hikes.”
  • More than 7 in 10 (76%) of current Marketplace consumers could save an average of $682 in annual premiums next year if they came back to Ratcliff Insurance to choose a lower cost, yet comparable metal level plan.


 Transition Period:

  • This year, we’re seeing a number of adjustments, including some that are due to issuers underpricing in the Marketplace’s initial years. Through 2016, Marketplace rates remained well below initial projections from the independent Congressional Budget Office (CBO), and well below the cost of comparable coverage in the employer market.
  • Marketplace rates for 2016 came in about 12% to 20% below what the CBO originally projected.
  • Even with higher premium growth this year, premiums for Marketplace coverage in 2017 will be roughly in line with CBO’s projections when the law passed.


 Employer Rates:

  • For the roughly 150 million Americans who get coverage through their employer, premium growth has slowed.
  • Five out of the last six years have seen the slowest growth rates on record.
  • Last year, employer-sponsored insurance premiums grew 3.4% compared to almost 8% average growth from 2000 to 2010.
  • In some cases, average statewide premiums declined in the SHOP Marketplace for small employers with 1-50 employees.
Posted in Health Insurance
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