HHS: Medicaid expansion and ACA tax credits lower Marketplace premiums

Health Insurance Marketplace premiums for 2015 averaged 7% lower in states that had expanded Medicaid eligibility to low-income adults under the Affordable Care Act than in states that had not, according to an analysis released today by the Department of Health and Human Services. “Because lower-income individuals on average have poorer health status than those with higher incomes, a state’s decision not to expand Medicaid affects the Marketplace risk pool and, ultimately, Marketplace premiums,” HHS said. Yesterday, HHS estimated that advance premium tax credits would keep premiums affordable for most Marketplace consumers even if 2017 premiums were to increase by 25% or more.