Concerns have been raised about 2015 premium increases for marketplace insurance plans. Some are predicting sharp increases, arguing that premiums are artificially low in 2014 and that insurers will attempt to recoup any 2014 losses by increasing premiums in 2015. In this brief we argue that marketplace competition has been strong in most state marketplaces and this is likely to continue. While there are maybe some reasons to believe premiums will increase substantially, particularly in less competitive markets, there are even stronger reasons to believe premium increases will be in line with underlying cost growth rather than growing by double digits.
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