Premium Affordability, Competition, and Choice in the Health Insurance Marketplace, 2014. Consumer Selections Based on Price

06/18/2014

Analysis of data on FFM plan selections reveals that within each metal level, individuals tended to select the plans with the lowest premiums (see Table 4 and Figure 3). Within the FFM, the lowest or second-lowest plan accounted for 60 percent or more of plan selections in the bronze, silver and platinum metal levels, 54 percent in the gold metal level, and 93 percent in the catastrophic level. For the silver level, 22 percent of Marketplace plan selections were for the benchmark plan (the second-lowest cost silver plan), while 43 percent were for the lowest cost silver plan and 35 percent were for silver plans at other premium price levels. On average, consumers had 16 silver plans per rating area to choose from, ranging from a low of two silver plans to a maximum of 67 silver plans.

TABLE 4 Distribution of Marketplace Plan Selections within Metal Level and Plan Cost Rank for All Individuals Who Selected Marketplace Plans, 2014 Federally-facilitated Marketplace

Metal Level Percent Who Selected the Lowest or Second-Lowest Cost Plan Percent Who Selected the Lowest Cost Plan Percent Who Selected the Second- Lowest Cost Plan Percent Who Selected Other Plans
Bronze 60% 39% 21% 40%
Silver 65% 43% 22% 35%
Gold 54% 37% 16% 46%
Platinum 69% 50% 19% 31%
Catastrophic 93% 76% 17% 7%
Total Where Metal Level Is Known 64% 43% 21% 36%

Source: ASPE computations of CMS Federally-facilitated Marketplace data as of 5/12/2014.
Note: The lowest and second-lowest plans are defined as the lowest cost Marketplace plan available in the rating area, even if that plan may not have a service area that covers the entire rating area. If multiple plans are tied for lowest (or  second-lowest) in a metal level and rating area, then selections of those plans are all counted toward selection of the lowest (or second-lowest) plan.

 

FIGURE 3: Distribution of Marketplace Plan Selections by Plan Cost Ranking for All Individuals Who Selected Marketplace Plans, 2014 Federally-facilitated Marketplace

figure_3

Source: ASPE computations of CMS Federally-facilitated Marketplace data as of 5/12/2014.
Note: The lowest and second-lowest plans are defined as the lowest cost Marketplace plan available in the metal level in the rating area, even if that plan may not have a service area that covers the entire rating area.

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