Obamacare Plans Are Cheaper Than Employer-Backed Coverage
Posted at 2:10 p.m. on Feb. 6, 2014
A new study from the Health Research Institute at PricewaterhouseCoopers reveals that health plans on Obamacare exchanges will on average be 20% cheaper than employer-backed plans.
National Journal: Insurers offering plans on the exchanges are able to keep their costs down because “the use of narrow networks, also known as high-performance health plans, allows insurance companies to increase competition among doctors and hospitals by being more selective about with which companies they include in their coverage.”
Ceci Connolly, managing director of the Health Research Institute: “We anticipate that the public and private exchanges are going to continue to foster greater competition and ongoing pressure to provide better value … Everyone’s going to be able to look at what’s out there and available on these exchanges. I think employers will turn around and ask insurers for similar good value, when they compare plan offerings and see if they’re getting what they want for their money.”