Affordable Care Act Marketplace Prices Fall Amid Increasing Competition

April 13, 2022

Average premiums for insurance plans in the Affordable Care Act marketplaces have dropped by 1.8% this year, marking the third consecutive year of price cuts. This three-year trend has followed an influx of new insurers entering the marketplaces formed by the Obama administration’s flagship legislation. The premium changes, however, were not uniformly distributed.

According to the Robert Wood Johnson Foundation, “Most states saw reductions in marketplace premiums, but premium prices varied considerably across states. Eleven states had average benchmark premiums of more than $500 a month for a 40-year-old nonsmoker, while six states had premiums less than $365 per month for similar individuals.”