Brief Are Nongroup Marketplace Premiums Really High? Not in Comparison with Employer Insurance
Linda J. Blumberg, John Holahan, Erik Wengle
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We compare unsubsidized 2016 nongroup marketplace premiums to the average employer sponsored insurance premiums in all 50 states and 73 metropolitan areas. We adjust second lowest cost nongroup marketplace premiums to account for the differences in actuarial value, induced utilization, and age distribution of enrollees. We find that nationally, nongroup marketplace premiums are 10 percent lower than the average employer sponsored insurance premium, after the adjustments. There is variation at across states and metropolitan areas, but more than ¾ of states and more than 80 percent of metropolitan areas having lower marketplace than employer premiums.

Research Areas Health and health care
Tags Health insurance Federal health care reform Private insurance Health care spending and costs
Policy Centers Health Policy Center