Tuesday, September 23, 2014

Michigan's Obamacare Choices to Increase 33%

Yes, the naysayers told us Obamacare would mean fewer options for consumers.
Yes, they were wrong ... again.
HHS has announced that 77 new insurers will offer plans somewhere in America in 2015, an increase of 25 percent. Even Republicans concede that added competition can only be a good thing for consumers (that's the claim they make for charter schools!).
Michigan will see a 33% increase in the numbe
of insurers offered through the federal exchange.
In Michigan, four additional providers will bring the total offering plans to 16, the most for any state on the federal insurance exchange (and just one fewer than the overall leader, New York).
Michigan used to be a state where Blue Cross Blue Shield had a virtual monopoly and commercial insurers complained they really couldn't compete. With enactment of the Affordable Care Act, insurers obviously feel they now can compete in our state. That means better coverage options and better prices for all of us.
According to HHS, studies have found "a correlation between greater competition and lower costs for consumers.... Specifically, an increase of one issuer in a rating area is associated with a 4% decline in the second lowest-cost silver plan premium, on average."

1 comment:

  1. So the government limited competition across state lines years ago to ensure we couldn't get affordable coverage. Now they take credit for encouraging competition after they force people to buy it! Are there no grown ups left to make sense of this?