Tax Credits & The Health Insurance Marketplace: How did they affect premium prices?

The new health insurance marketplaces have been the topic of much interest – and confusion – in 2014. Three months after the open enrollment period ended, reports are starting to emerge that show the impact these marketplaces have on the premium prices and access for people throughout the country.


The Marketplaces were developed to provide consumers with the ability to compare plans in their area and get tax credits toward their health care costs (if applicable). They also encourage competition between insurance companies by enabling consumers to easily compare costs, services and reviews.


But are they working like they are supposed to?


Health and Human Services (HSS) released a report that examined the affordability, competition and choice of the marketplaces nationwide. They found:


–          People who used tax credits when selecting plans saw an average price-reduction of 76% in their monthly premium prices (from an average of $346 to $82).

–          69% of people who chose plans with tax credits had a monthly premium of less than $100.

–          46% of people who chose plans with tax credits had a monthly premium of less than $50.

–          Silver plans were the most popular choice of plan.

–          There was a lot of competition: 82% of people eligible to purchase a health plan had between 3 and 11 companies to choose from.


There is a lot more to learn, but this initial report provides reason to be optimistic regarding the impact of tax credits and the Marketplaces on making health insurance affordable.


RMHP offers the largest number of plans on Colorado’s Health Insurance Marketplace – Connect for Health Colorado – giving Coloradans choice and control over their health insurance choices.


Do you have an RMHP plan and are wondering if you qualify for tax credits? Or are you wondering how to sign up? Contact us today to get your questions answered!

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