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Rep. Waxman: New HHS Report Shows ACA is Dramatically Reducing Premiums
In the letter, Rep. Waxman wrote, "Among those signing up through the federal marketplace, nearly 90% received tax credits to help them afford coverage. These tax credits cut premiums by more than 75%. As a result, nearly 7 in 10 enrollees are paying
The full text of the letter is available below and online at: http://democrats.energycommerce.house.gov/sites/default/files/documents/Upt on-HHS-Report-Insurance-Marketplaces-2014-6-18.pdf.
Dear Chairman Upton,
I write to call your attention to a report released today by the
This new report contradicts an analysis you released a year ago, which asserted that premiums under the Affordable Care Act would rise by as much as 400%. You claimed that your report "definitively contradict[s] the promise that the law will lower costs." As I pointed out at the time, your analysis had serious methodological flaws, including your failure to examine any of the actual premiums for plans sold in the marketplaces and to factor in the tax credits available to the vast majority of consumers. Now we have authoritative data that proves your predictions of dramatic premium increases were incorrect.
The HHS report examines over 19,000 plans in the federally facilitated marketplace, sold in more than 500 rating areas across the country, and presents data on the actual premiums paid by individuals signing up for coverage. The report proves conclusively that premiums in the new health insurance marketplaces are not only very affordable, but are often significantly less expensive than what was available in the individual market before reform, while offering superior coverage.
In total, 5.4 million people have signed up for health coverage through the federal marketplace. An additional2.6 million signed up for coverage through marketplaces run by the states. Among those signing up through the federal marketplace, nearly 90% received tax credits to help them afford coverage. These tax credits cut premiums by more than 75%. As a result, nearly 7 in 10 enrollees are paying
In several instances, your 2013 staff report cited premiums of between
The report also finds that the number of insurers offering coverage in an area is associated with lower priced coverage. This is particularly notable because of the dramatic increase in competition many state marketplaces are reporting in 2015. Every state releasing details on their 2015 marketplaces has indicated a significant increase in competition. For instance,
Today's report thoroughly discredits one of your main attacks on the Affordable Care Act. I hope it will lead you to reconsider your approach to the law.
 In Every State So Far, More Insurers Are Asking to Participate in Obamacare, Advisory Board Daily Briefing Blog (
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