Health Exchange Subsidies Hold Cost For Enrollees | Mercer US

Health Exchange Subsidies Hold Cost For Enrollees

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Exchange Subsidies Hold Cost For Enrollees
Calendar10 February 2015

The importance of health exchange subsidies – under attack in a case before the Supreme Court – is highlighted by data from a new HHS report on the federal exchange, discussed in this Business Insurance article. Individuals who enrolled in the public exchange during the 2015 open enrollment period –and were eligible for subsidies –paid an average of $105 monthly. Without subsidies, their average premium would have been $375. The great majority (87%) of the nearly 7.5 million people who enrolled for coverage in the federal exchange through Jan. 30 received a subsidy. With these subsidies, the monthly cost of coverage for exchange enrollees is similar to the cost for employees in plans offered by large employers (500 or more employees). In 2014, Mercer’s survey found the average monthly employee contribution was $111 for employee-only coverage, ranging from $73 in a consumer-directed health plan with an HSA to $126 for coverage in a traditional PPO. Small employers (10-499 employees) require higher employee contributions; on average, $169 monthly

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