The majority of Florida residents who signed up for coverage under President Barack Obama’s health care law are paying $100 or less a month in premiums on average, the administration reported Wednesday.
A report released by the U.S. Department of Health and Human Services found the average monthly premium is $347 a month, but a typical Florida enrollee pays $68 after tax credits across all plan types. The government pays the subsidy directly to insurers.
Nearly 1 million Floridians signed up for coverage under the Affordable Care Act – the highest enrollment among the 36 states using the federally administered marketplace. Taxpayers are subsidizing more than 90 percent of their monthly premiums. That’s higher than the national rate – the report found taxpayers are subsidizing 76 percent of the average monthly premium in the 36 federally administered markets.
In Florida, 75 percent of enrollees paid premiums of $100 or less a month after tax credits, and 56 percent paid an average premium of $50 or less a month after tax credits, according to the report.
The large number of consumers receiving tax subsidies has raised concerns that the program may end up costing the federal government more money than was projected this spring.
The Congressional Budget Office initially estimated that health insurance subsidies will total almost $1.2 trillion over the next ten years and then lowered that figure to $1 trillion in April.
Federal health officials said in a conference call with reporters that the law was encouraging greater competition, which was helping lower premiums for consumers.
Most Sunshine State residents could choose from two or more health insurers in the federal exchange, the report found.