ACA premiums expected to drop for the first time
Add Axios as your preferred source to
see more of our stories on Google.
“Affordable Care Act premiums are going down” is a headline no one's ever seen before, so it’s no surprise the Trump administration is trying to take credit for the change.
Driving the news: The administration announced yesterday that premiums for a "benchmark" plan will drop by an average of 1.5% next year in the federally run ACA marketplaces — the first time that’s happened since it launched.
- The fine print: This is the average premium for a 27-year-old single nonsmoker. Actual premiums will vary based on your age and where you live.
What they're saying: Seema Verma, the administrator of the Centers for Medicare and Medicaid Services, said premiums are lower because the Trump administration has approved several state reinsurance programs — and opened the door to cheaper options like short-term plans and association health plans.
Reality check: Reinsurance has almost certainly held premiums down. But short-term plans, like the nullification of the individual mandate, aren't contributing to lower ACA premiums. State regulators have said their premiums would be lower without those policy changes.
- Insurers also priced a lot of those expensive policies into this year's premium hikes, which averaged out to a whopping 37%. Having those increases in the bank is part of the reason premiums can go down now.
