Study: Obamacare Premiums 20% Lower Than Employer-Provided Plans

Via National Journal’s Clara Ritger, a new study from PricewaterhouseCoopers’ Health Research Institute found that health plans offered through the Affordable Care Act exchanges were 20% less expensive than comparable employer-provided coverage.

The study compared the lowest-priced gold and platinum plans (80% and 90% coverage, respectively), which researches said were equivalent to the average employer-backed plans, which cover an average of 85% of medical expenses. The study did not measure how much each purchaser would have to pay for the plan, as it did not attempt to calculate subsidies or percentage of employer contribution, but merely total cost. Nonetheless, a spokesperson for the HRI said that overall cost is the driving factor in coverage selection.

The lower premiums are due in large part to narrower networks, which could lead to what some have termed “access shock,” in which patients lose access to their preferred doctor. HRI said that the increased competition in networks, and the lower premiums that result, will likely compel employers to segue into similar plans, creating a marketplace of increased competition for narrower networks.

“I think we’re really going to learn a lot about what consumers want now that they really have this opportunity to choose from a lot of different plans,” said Ceci Connolly, managing director for HRI. “And ultimately competition coming to health care is a good and healthy thing.”

[h/t National Journal]

[Image via Mike Segar/Reuters]

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