Michigan has shown a small decrease in premiums for plans under the Affordable Care Act (“ACA”).
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There has been a great degree of variance from state to state in health insurance premium increases from 2015 to 2016.
In Michigan, premium prices had been rising since 2014. There was a decrease of 1.9% in Michigan between 2015 and 2016 for the lowest cost silver plan.
Why the decrease?
Michigan has strong competition from other health insurance companies which forced the prices on the marketplace to come down.
How much did the average premium decrease by?
In Michigan, the average premium was:
- In 2014 – $218 per month;
- In 2015 – $241 per month.
Now, in 2016, the average monthly premium for the silver plan is $237 per month.
Other states have continued to see steep increases in premiums.
Why the difference?
One of the biggest indicators is competition.
States that have many private insurers allow for competition with healthcare.gov, which forces the prices on the government site to come down.
States that had a less established individual market before the ACA have show increases like that in Oklahoma where premiums went up by 41.8% from 2015 to 2016.
Michigan is one of 19 states that had a decrease or increase of less than 5% from 2015 to 2016.
Michigan’s average monthly premium is lower than the national average which is $283 per month for 2016.
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