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You are here: Home / News / Brief Examines State of ACA Marketplace

Brief Examines State of ACA Marketplace

January 13, 2020 by NDNRC

A new issue brief from the Kaiser Family Foundation examines the state of individual marketplace as of the end of 2019. The brief entitled “Individual Insurance Market Performance in Late 2019” looks at the issue of whether or not the elimination of the individual mandate penalty affected the marketplace in any negative way. The report shows that the insurance companies initially increased premiums by 5% to compensate for the lack of a penalty, but premiums remained steady since then likely due to the fact that insurers overestimated the effect the lack of a penalty would cause. There is proof though that the lack of a penalty did cause some to leave the market as enrollment drop by 10% for individuals who are not eligible for the premium tax credits. Heading into 2020 however, things for the marketplace look good as the brief notes that premiums have actually gone down by 2-3% for this plan year.

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