As reported by many news outlest, individual health rates are experiencing slight rate increases for 2015. HOWEVER THERE IS A PROBLEM if you receives premium assistance your effective rate increase may be quite large. On average it is 77%.
A key feature of the subsidy calculation is the premium of the 2nd lowest cost Silver plan. In 8 of the 9 Colorado regions the cost of this plan dropped significantly. This is primarily due to CoHealthOp lowering their Silver and Gold plan rates aggressively.
Unfortunately, this rate decrease results in a significantly lower subsidy which results in a substantial effective premium increase to the policy holder. According to the Denver Post, people receiving subsidies will have a 77% rate increase.
According to an analysis done for the Colorado Division of Insurance, the average share of costs for customers receiving tax credits in 2014 was $161.79 a month. In 2015, if they keep the same plans, their average share of costs after tax credits will be $281.01.
Of course, each individual situation is different but if you are receiving a significant subsidy, beware. The subsidy is constant and is NOT affected by the plan you select. In some situations, you can restore your premium to the same level by changing insurance companies.
My recommendation is you use a licensed broker that is certified with Connect for Health Colorado. Once such broker is…. Chris Adams and can be reached at 303.495.3045!
