Cost Of Benchmark Health Coverage In Tennessee Soars 23%

Oct. 27--The cost of a benchmark health coverage plan sold by insurers through the federal Health Insurance Marketplace is rising 23.4 percent in Tennessee for 2016, which is three times the national average, according to a federal report released Monday.

The increase in Tennessee compares with an average increase of 7.5 percent among all 37 states where open enrollment begins Nov. 1 to sign up for "Obamacare" health insurance offered online through HealthCare.gov.

For the first two years for the Health Insurance Marketplace crafted by the Affordable Care Act, Tennessee had some of the lowest cost benchmark plans among all the states. Losses, higher-than-expected costs and fewer young and healthy customers than forecast were key factors insurers cited for increasing prices for 2016.

Tennessee had the sixth highest increase, on a list where Oklahoma ranked No. 1 with a 35.7 percent hike.

Arkansas consumers will see a lower increase, of 4.3 percent, while the average cost of Mississippi coverage will drop 8.2 percent.

The 2016 rates reflect the second-lowest cost of "silver" plans, those used to set subsidies for the marketplace insurance plans.

With subsidies available for individuals with incomes ranging from the poverty level to four times the poverty level, U.S. Department of Health & Human Services officials are stressing the affordability of coverage despite price hikes.

Eighty-five percent of consumers of the plans in Tennessee received premium tax credits and of those, 90 percent could select a plan with monthly premiums of less than $100 a month, the Department said.

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