Market Competition Works: Proposed Silver Premiums in the 2014 Individual and Small Group Markets Are Nearly 20% Lower than Expected Premiums

A goal of the Affordable Care Act is to increase competition and transparency in the markets for individual and small group insurance, leading to higher quality, more affordable products. Information on proposed premiums in the individual and small group markets has recently been made available by selected states, and it is now possible to move from theoretical arguments to data-driven analysis. This research brief analyzes proposed rates in the individual market for 2014 in the eleven states that have made information available, and compares these rates to those estimated by the Congressional Budget Office. Further, for six states, we compare the rates that will be charged to small employers with the average amount that small employers would have been expected to pay in 2014 for comparable coverage and a comparable population. Overall, silver premiums in the 2014 individual and small group markets are nearly 20% lower than expected. [12 PDF Pages]