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Recent analysis reveals a growing convergence in costs between health insurance obtained through the Affordable Care Act (ACA) Marketplaces and traditional employer-sponsored plans.
A new report from the Peterson-KFF Health System Tracker demonstrates that ACA Marketplace premiums are becoming increasingly similar to those offered through employer-sponsored insurance. In 2024, the average monthly premium for individual market coverage reached $540 per member, slightly less than the $587 average for fully-insured employer plans.
This represents a important shift since 2017, indicating a narrowing of the cost disparity between these two major avenues for health insurance coverage.
Data Methodology
The analysis leverages data from the Mark farrah Associates Health Coverage Portal,utilizing insurer filings submitted to the National Association of Insurance Commissioners (NAIC) through the Annual Exhibit of Premiums and Utilization. This data provides a comprehensive view of average premiums and claims costs on a per-member, per-month basis across both the individual and group insurance markets.
explore More data
For a deeper dive into health costs and the full analysis,visit the Peterson-KFF Health System Tracker. This online resource serves as a leading hub for monitoring and evaluating the performance of the U.S.health system.
Context & Trends
The Affordable Care Act aimed to expand health insurance coverage and affordability. Understanding the relative costs of Marketplace plans versus employer-sponsored insurance is crucial for individuals making coverage decisions, and also for policymakers evaluating the ACA’s impact. Factors influencing these costs include government subsidies, risk adjustment mechanisms, and the overall health of the insured population.
Frequently Asked Questions
- What is the ACA Marketplace?
- The ACA Marketplace (also known as exchanges) provides a platform for individuals and families to purchase health insurance, often with financial assistance in the form of subsidies.
- What is employer-sponsored health insurance?
- Employer-sponsored health insurance is coverage offered by an employer to its employees, often with the employer contributing a portion of the premium.
- Where can I find more information about health insurance costs?
- The Peterson-KFF Health System Tracker (https://www.healthsystemtracker.org/) is an excellent resource for data and analysis on health costs.
I hope this article provides a clear understanding of the current landscape of health insurance costs. If you found this information helpful, please share it with your network! I’m always eager to hear your thoughts – feel free to leave a comment below, or subscribe to our newsletter for more in-depth analysis on critical issues shaping our world.
