Many consumers who purchased health plans on the government marketplace this year are facing lower out-of-pocket costs compared to 2015, according to new data from CMS.
CMS' latest report addresses recent criticism of insurance exchanges created under the Affordable Care Act, which critics argue have failed to reduce out-of-pocket spending or offer more affordable healthcare options to consumers.
In the data brief released Tuesday, CMS says the marketplace has actually decreased consumers' healthcare costs as more people qualify for cost-sharing subsidies and financial assistance programs.
Below are five findings.
1. Individuals who enrolled in health plans on government exchanges this year have lower deductibles than in 2015, said CMS. The average individual deductible for ACA policies fell 5.5 percent from $900 in 2015 to $850 in 2016. CMS' report takes into account the fact policyholders with income levels below 250 percent of the federal poverty level qualify for financial assistance programs that reduce their deductible.
2. About 60 percent of consumers with ACA coverage qualified for financial assistance in 2016.
3. Still, about 43 percent of ACA enrollees have deductibles of $2,500 or more.
4. On average, health plans purchased through the ACA exchanges offer reduced cost-sharing for seven common healthcare services before policyholders fulfill their deductible. This means that members' out-of-pocket expenses are further reduced for consumers' most frequent healthcare needs.
5. One-third of policyholders with federal-subsidized health plans have deductibles of $250 or less in 2016. More than half of those enrolled in ACA plans have deductibles less than $1,000.