BREAKING: We are announcing today that, for the very first time under the ACA, the premium for a typical federal exchange plan will actually drop. Insurers have proposed to cut premiums for these benchmark plans by 2% nationally.
— Secretary Alex Azar (@SecAzar) September 27, 2018
On September 27, 2018, Secretary of Health and Human Services Alex Azar tweeted that for the first time under the Affordable Care Act (ACA) insurers have proposed premium cuts of 2% nationwide! This means 2019 will be the first year of reduced premiums after years of steep increases since the health insurance marketplaces were opened.
There are many factors that have lead up to the premium reductions. While many insurers have left the marketplace in years past, this year we will see more insurers offering a wider variety of plans in the marketplace. The marketplace is stabilizing and has finally become a viable option for insurers which can now work in ways that are more mutually beneficial than before due to increased competition. Insurers are also trying to entice younger, healthier Americans to purchase and retain health insurance plans.
This news is welcomed as we near open enrollment for plans available on the 2019 individual marketplace, which will be November 1 through December 15, 2018. When open enrollment begins, American Exchange will be prepared to help assist you in choosing the plan that best fits your needs.