Caring Health

Obamacare premiums in Florida jump 17 percent, but no increase with tax credit

October 27, 2016

Health insurance premiums on the Affordable Care Act’s marketplaces were announced earlier this week. Nationally, the average rate increase is projected to 22 percent, before accounting for tax credits.

However, the rate increase for Florida is 17 percent. Once the tax credit is factored in the net cost drops slightly.

The Kaiser Family Foundation analyzed 2017 premiums and insurer participation made available through Healthcare.gov on Oct. 24, as well as data collected from states that run their own exchange websites.

The foundation looked at premiums for the Second-Lowest Silver Plan, which is one of the most popular plan choices on the marketplace, and then analyzed the premiums for a major city in each state with available data.

In 2016, the second-lowest silver premium for a 40-year-old non-smoker was $262 per month in Miami, before accounting for the tax credit that most enrollees in this market receive.

Nationally premiums in 2016 ranged $186 per month in Albuquerque, NM to $719 in Anchorage, AK, before the tax credit.

The Miami premium will increase to $306 per month, 17 percent, before the tax credit.

Nationally in 2017, the second-lowest silver premium for a 40-year-old non-smoker will range from $229 in Louisville, KY and Cleveland, OH to $904 in Anchorage, AK, before the tax credit.

Most enrollees in the marketplaces receive a tax credit to lower their premium. In most parts of the country in 2016, a 40-year-old adult making $30,000 per year would pay about $208 per month for the second-lowest-silver plan. If this person is willing to switch to whatever the new second lowest-cost silver plan is in 2017, they will pay a similar amount (the after-tax credit payment for a similar person in 2017 is $207 per month or a change of 0%).

For Miami

2016
Monthly Premium $262
Tax Credit -$54

Net Cost $208

2017
Monthly Premium $306
Tax Credit -$99

Net Cost $207

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