eHealth Report on the Plight of Unsubsidized ACA Consumers Tracks Eight Years of Cost and Plan Selection Trends

Rhea-AI Summary

eHealth, Inc. (NASDAQ: EHTH) released its ACA Index Report on Unsubsidized Consumers for the 2021 open enrollment period, highlighting ongoing challenges faced by consumers without federal subsidies. The report reveals that average individual premiums decreased slightly to $450, while family premiums remained stable at $1,157. The average deductible for individual plans rose 4% since 2019. Notably, family potential costs exceeded $25,000, with a significant increase in the popularity of EPO plans. The report emphasizes concerns about the expiration of expanded subsidies under the American Rescue Plan Act.

Positive

• Average individual premiums decreased slightly from $456 to $450.
• More consumers chose Silver plans (39%) over Bronze plans (36%) for the first time.
• EPO plans accounted for over a third (35%) of all plan selections.

Negative

• Average deductibles for individual plans increased 4% since 2019.
• Annual potential costs for families topped $25,000, with a high deductible of $8,440.
• Increased concerns about the expiration of expanded subsidies under ARPA in two years.

SANTA CLARA, Calif., Aug. 17, 2021 /PRNewswire/ -- Today eHealth, Inc. (NASDAQ: EHTH) (eHealth.com) released its ACA Index Report on Unsubsidized Consumers for the 2021 open enrollment period (November 1 through December 15, 2020). The report provides a snapshot of consumer costs and plan selection trends prior to the temporary expansion of federal subsidies under the American Rescue Plan Act (ARPA).

Published since 2014, eHealth's ACA Index Reports have focused exclusively on cost and plan selection trends among consumers not receiving federal subsidies in the form of advanced premium tax credits for Affordable Care Act (ACA) coverage. This year's report provides an eight-year overview of the market from 2014 to 2021.

"eHealth has long referred to the unsubsidized as the ACA's 'forgotten' consumers and advocated on their behalf by drawing attention to the cost burdens they were asked to shoulder," said eHealth CEO Scott Flanders. "When ARPA was signed into law this past March they finally got the help they needed. Unfortunately, ARPA's expanded subsidies are set to expire in two years. eHealth's ACA Index Report for 2021 illustrates the shockingly high costs many could be asked to pay again if these expanded subsidies are not made permanent."

Highlights from the report:

• Average monthly premiums hovered near record highs: Average individual premiums decreased 1% year over year, from $456 to $450 per month; average family premiums remained essentially unchanged, at $1,157 per month.
• Average deductibles continued to rise: Average annual deductibles for individual plans increased 4% since 2019, while deductibles for family coverage increased 7% in the same period.
• Annual potential costs for 4-person families topped $25,000 again: For 2021, the average family of four paid $16,776 in annual premiums and faced an annual deductible of $8,440.
• Silver plans topped Bronze plans for the first time: More unsubsidized consumers chose Silver plans (39%) than Bronze plans (36%) for the first time since eHealth began tracking trends in 2014.
• EPO plans continued to increase in popularity: As of 2021, EPO plans accounted for more than a third (35%) of all plan selections, while HMO plans accounted for about half (49%), and PPO plans for 17%.

Read the full report for more findings and methodology information.

About eHealth
eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 200 health insurance carriers across 50 states and the District of Columbia.

Media inquiries: 

eHealth
pr@ehealth.com

 

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SOURCE eHealth, Inc.

FAQ

What were the key findings of eHealth's ACA Index Report for 2021?

The report highlighted decreasing average individual premiums, rising deductibles, and potential high annual costs for families, emphasizing concerns over subsidy expirations.

How much did average premiums change in the 2021 ACA Index Report?

Average individual premiums decreased by 1% to $450, while family premiums remained stable at $1,157.

What type of health plans became more popular in 2021 according to eHealth?

EPO plans gained popularity, accounting for over 35% of all plan selections, while more consumers opted for Silver plans over Bronze.

What concerns are raised in the eHealth ACA Index Report regarding subsidies?

The report raises concerns about the potential termination of expanded subsidies under the American Rescue Plan Act, which could lead to higher costs for consumers.