Higher premiums, more choices being offered in online marketplace health plans

FARGO – Consumers shopping for health insurance through the online marketplace have more options but many also are likely to face higher premiums, according to surveys.

In North Dakota, the three insurers selling through the marketplace – which is necessary to obtain tax credits for premium subsidies for those who are eligible – have increased the number of insurance plans from 21 last year to 30.

Similarly, the numbers of participating insurers dropped in Minnesota from five to four, but consumers still have more insurance plans to choose from.

Marketplace premiums vary by age and level of coverage, which are categorized by metals according to the level of benefits and cost, with gold the highest, followed by silver and bronze.

Comparisons of premium increases underscore the importance of shopping around for the best plan in terms of coverage, premiums and co-payments. The open enrollment period for 2015 plans runs through Feb. 15.

A comparison of premium trends from 2014 to 2015 for midrange silver plans sold to consumers in Fargo found slight increases in premiums and subsidies.

The analysis, by Kaiser Family Foundation, assumed a 40-year-old non-smoker with an annual income of $30,000 of the second-lowest cost silver plan.

In Cass County, the difference in premiums essentially was flat, though the increase ranged from 5 to 10 percent in most of the state, and more than 10 percent in northwestern counties, according to the Kaiser study.

In most of Minnesota, premiums in the Kaiser example increased by more than 10 percent for the second-lowest silver plan.

A similar analysis by McKinsey & Co. found premiums for the lowest-cost silver plan increased 7 percent in North Dakota, and varied by decreases of as much as 8 percent and increases of as much as 25 percent in Minnesota.

Consumers who bought their insurance on the marketplace from Blue Cross Blue Shield of North Dakota – by far the state’s dominant insurance carrier – will see an average premium increase of 13 percent next year, said Brad Bartle, the Blues’ chief actuary.

With age increases, the average would be slightly higher, from 14 to 15 percent, he said.

“We didn’t make too many product changes this year,” Bartle said. “We think the plans have gotten more competitive in North Dakota,” in terms of price and coverage.

As of early last month, more than 10,500 North Dakota consumers had selected health insurance coverage through the marketplace. Enrollment for coverage this year in marketplace plans sold by Blue Cross Blue Shield lagged behind expectations but is picking up, Bartle said.

Adam Hamm, the North Dakota insurance commissioner, said through a spokeswoman that his department doesn’t track premiums and plan offerings on the exchange, which is administered by the federal government.