Some of the cheapest health plans available through the Patient Protection and Affordable Care Act health insurance exchanges cost notably less than the cheapest coverage available off the exchanges, according to a study conducted by consumer research company HealthPocket.
HealthPocket analysts compared the lowest-cost bronze, silver and gold off-exchange plans sold by four insurance companies — UnitedHealthcare, Aetna, Cigna and Assurant — to exchange plans in the same metal tiers with the lowest premiums. The premium comparisons assumed the consumer was a 40-year-old non-smoker with health insurance effective July 1 of this year, according to the study.
On average, the cheapest off-exchange bronze-level plans offered by the four insurers cost 45 percent more than the least expensive bronze plans offered through the exchanges, the analysts found. The average lowest exchange plan premium for bronze-level coverage across 39 cities studied was $205 per month. The average off-exchange plan lowest premiums averaged $291 for UnitedHealthcare, $280 for Aetna, $279 for Cigna and $278 for Assurant.
The exchanges also had the cheapest silver and gold plans in 35 out of the 39 cities. According to HealthPocket, the exchange websites' price comparison options could have driven the health plans to be more price competitive on the exchanges. Furthermore, it's important to consider that the exchange plans having lower premiums doesn't necessarily mean they offer better value. The study states, "For consumers that anticipate no healthcare usage, the premium is the only relevant cost for their health plan. However for all other consumers, lower deductibles and lower coinsurance can make up for the cost of a higher premium."
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