Increased Competition Controlled Premiums on Health Exchanges

Most Americans who signed up for coverage on the federally run health insurance marketplaces had more choice of health plans in 2015 compared with the previous year, and the increased competition helped hold down the growth in premiums, according to a report released Thursday by federal officials.

 

In 2015, 86 percent of consumers could choose from plans offered by at least three insurers, up from 70 percent in 2014. Premiums increased an average of just 2 percent for one of the most popular types of plans between 2014 and 2015.

 

The report from the Health and Human Services Department is the most systematic analysis to date on competition in the marketplaces created under the Affordable Care Act.

 

It looked at the number of health insurance issuers and premiums between open enrollment periods for the 2014 and 2015 plan years in the 35 states that did not set up their own exchanges but used the federal government’s HealthCare.gov platform in both years.