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Campaign Press Release - Obamacare Premiums Are Falling Under President Trump

October 21, 2020

For the third year in a row, Obamacare premiums are decreasing across the country while consumers are seeing more choice

Key Takeaways:

  • Average premiums for Obamacare plans will decline for the third consecutive year in 2021, the Centers for Medicare and Medicaid Services announced this week

  • From 2018 to 2021, average Obamacare premiums for individuals have declined by 8 percent and by 6.5 percent for the average family of four

  • Average benchmark premiums are falling in 25 of 36 states that still offer plans on Healthcare.gov

  • Average premiums in Iowa, Maine, New Hampshire, and Wyoming are decreasing by 10 percent or more

  • Under President Trump, the Obamacare exchanges are seeing an increase in the number of insurers, providing more choice for consumers

  • The percentage of enrollees with access to only one insurer has decreased from 29 percent in 2018 to just 4 percent in 2021

  • Next year, the average Obamacare enrollee will now have 4 to 5 health plans available to choose from

  • President Trump has increased choice and competition in health insurance to bring down costs, saving Americans billions of dollars

  • President Trump has also taken action to give the American people relief from Obamacare

  • President Trump's tax cuts repealed Obamacare's unpopular individual mandate, which forced Americans to buy health insurance they did not want
  • President Trump signed bills eliminating Obamacare's Independent Payments Advisory Board (IPAB), "Cadillac" Tax, Health Insurance Tax, and Medical Device Tax

AMERICANS ARE SEEING MORE CHOICE AND LOWER OBAMACARE PRICES UNDER PRESIDENT TRUMP

Obamacare Premiums Are Going Down For A Third Consecutive Year

Two Days Ago, The Centers For Medicare And Medicaid Services (CMS) Announced That Obamacare Premiums Are Declining In 2021. "Today, the Centers for Medicare & Medicaid Services (CMS) released a report showing the trend of lower premiums and increased issuer participation for HealthCare.gov will continue for 2021 year." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • Average Premiums For A Benchmark Obamacare Plan Are Dropping By 2 Percent. "The average premium for the second lowest cost silver plan (also called the benchmark plan) dropped by 2% for the 2021 coverage year." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

Average Benchmark Plan Premiums Have Now Declined For Three Consecutive Years, An 8 Percent Reduction Overall. "Three years of declining average benchmark plan premiums combine to deliver an 8% premium reduction across HealthCare.gov since the 2018 coverage year." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • Average Benchmark Premiums For An Individual Decreased $32, From $411 In 2018 To $379 In 2021. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)
  • Average Benchmark Premiums For A Family Of Four Decreased $104, From $1,590 In 2018 To $1,486 In 2021. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

Average Premiums Are Decreasing Across The Board

Average Premiums For Bronze, Silver, And Gold Plans Are All Declining Next Year For Both Individuals And The Average Family. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)


("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

Obamacare Consumers Are Seeing More Choice, With More Insurers To Choose From

Over The Last Three Years, The Percentage Of Obamacare Enrollees With Access To Only One Insurer Decreased From 29 Percent In 2018 To Just 4 Percent Next Year. "Issuer participation will also increase for the third year in row, which represents a dramatic increase in choice for consumers. As more issuers offer coverage, the percentage of HealthCare.gov enrollees with access to only one issuer is decreasing from 29% in 2018 to 4% in 2021, and more than three quarters of HealthCare.gov enrollees will have access to at least three issuers in 2021."(Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • "More Than Three Quarters Of HealthCare.gov Enrollees Will Have Access to At Least Three Issuers In 2021." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)
  • The Average Enrollee Will Have Between 4 And 5 Health Plans To Choose From. "HealthCare.gov states' PY21 Exchange enrollees have greater issuer choice compared to PY20. The average PY21 enrollee has between 4 and 5 QHP issuers available, compared to between 3 and 4 QHP issuers in PY20." ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

The Number Of Counties Nationwide With Only A Single Insurer Dropped From 50 Percent In 2018 To Just 9 Percent In 2021. "The map covers the entire country and shows the portion of counties with only a single issuer dropped from 50% in 2018 to 24% in 2020 and will drop further to 9% in 2021." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • The Number Of Counties Nationwide With Only A Single Insurer Dropped By 82 Percent From 2018 To 2021. "For 2021, there will be 288 counties nationwide with a single issuer offering plans through the Exchange, down over 80% from a high of 1,582 counties with a single health insurance issuer offering plans through the Exchange in 2018." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)


("County by County Plan Year 2021 Projected Insurer Participation in Health Insurance Exchanges," Centers For Medicare And Medicaid Services, Accessed 10/20/20)


("County by County Analysis of Plan Year 2018 Insurer Participation in Health Insurance Exchanges," Centers For Medicare And Medicaid Services, Accessed 10/20/20)

22 More Insurers Will Offer Obamacare Coverage In 2021, "For A Total Of 181 Issuers Delivering More Choice And Competition For Consumers." "The average premium for the second lowest cost silver plan (also called the benchmark plan) dropped by 2% for the 2021 coverage year and, when looking at states that are using HealthCare.gov in both 2020 and 2021, 22 more issuers will offer coverage in 2021, for a total of 181 issuers delivering more choice and competition for consumers." (Press Release, "Premiums For HealthCare.gov Plans Are Lower For Third Consecutive Year," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • Under President Trump, The Number Of Obamacare Insurers Expanded From 132 In 2018 To 181 In 2021, An Increase Of 49 Insurers. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

Under President Trump, The Average Number Of Qualified Health Plans (QHPs) Available To Enrollees Have Increased Across Bronze, Silver, And Gold Plans. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)


Obamacare Premiums Are Decreasing In Most States

Average Benchmark Obamacare Premiums Are Declining Next Year In 25 Of 36 States That Offer Plans On Healthcare.gov. (Press Release, "Plan Year 2021 Qualified Health Plan Choice and Premiums in HealthCare.gov States," Centers For Medicare & Medicaid Services," 10/19/20)

  • In Iowa, Maine, New Hampshire, And Wyoming, Average Benchmark Premiums Are Decreasing By 10 Percent Or More In 2021. "Four states (Iowa, Maine, New Hampshire, and Wyoming) have average benchmark plan premiums decreasing 10% or more from PY20 to PY21." (Press Release, "Plan Year 2021 Qualified Health Plan Choice and Premiums in HealthCare.gov States," Centers For Medicare & Medicaid Services," 10/19/20)

Average Benchmark Premiums Have Decreased In 26 Of 36 States From 2018 To 2021. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

  • Average Benchmark Premiums Have Declined By More Than 10 Percent In 14 States Over That Time Frame – Arizona, Illinois, Iowa, Maine, Mississippi, Montana, New Hampshire, New Mexico, North Carolina, Oklahoma, Tennessee, Utah, Virginia, Wisconsin. ("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)


("Plan Year 2021 Qualified Health Plan Choice And Premiums In HealthCare.gov States," U.S. Centers For Medicare And Medicaid Services, 10/19/20)

PRESIDENT TRUMP'S POLICIES ARE CREATING MORE CHOICE AND COMPETITION IN HEALTH CARE

Expanding Short-Term, Limited Duration Health Plans (STLDs)

The Trump Administration Has Expanded The Availability Of Short-Term, Limited-Duration (STLD) Plans, Which Offers Consumers More Choice And Plans That "Typically Cost Less Than Half Of Obamacare Plans." "President Trump's Administration took action last year to expand short-term, limited-duration plans, giving Americans more access to plans that fit their needs. Subject to State regulation, these plans can be offered for up to 364 days and renewed for up to 36 months after the Obama Administration limited them to 3 months. Short-term health plans are a particularly attractive option for the nearly 30 million uninsured people with gaps in employment, and those most hurt by rising premiums. Short-term health plans typically cost less than half of the cost of Obamacare plans." ("President Donald J. Trump's Healthcare Actions To Expand Choices And Lower Costs Are Producing Real Results," The White House, 2/8/19)

  • An Estimated 1.7 Million People Who Would Otherwise Be Uninsured Are Expected To Enroll In STLD Plans, According To An Estimate From The Urban Institute. "About 1.7 million of the people buying STLD policies would have been uninsured (in the traditional sense) under current law, and 2.6 million STLD policy holders would otherwise have had insurance of some type." (Linda J. Blumberg, Matthew Buettgens, And Robin Wang, "Updated: The Potential Impact Of Short-Term Limited-Duration Policies On Insurance Coverage, Premiums, And Federal Spending," Urban Institute, 3/18)
  • A Report By The White House Council Of Economic Advisers Found That The Trump Administration's Expansion Of STLDs Will Produce $82 Billion In Benefits Over A Ten Year Period. (The Council Of Economic Advisors, "Deregulating Health Insurance Markets: Value To Market Participants," The White House, 2/19)

Increasing Access To Association Health Plans (AHPs)

The Trump Administration Issued A Rule Making It Easier For Small Businesses And Self-Employed Workers To Join Together To Form Association Health Plans (AHPs), Increasing The Availability And Choice Of Insurance For These Workers. "Last year, the Administration introduced a second pathway for employers to join together to form Association Health Plans and provide more affordable health coverage to employees. A new report found that 28 AHPs have formed already, with more under development, and offer coverage similar to employer-based coverage. Some AHPs show up to 30 percent savings on premiums." ("President Donald J. Trump's Healthcare Actions To Expand Choices And Lower Costs Are Producing Real Results," The White House, 2/8/19)

There Are A Number Of Examples Of Association Health Plans Leading To Lower Premiums For Workers: ("Successful Association Health Plans," U.S. Chamber Of Commerce, Accessed 11/1/19)

  • The Las Vegas Metro Chamber Of Commerce's AHP Reduced Employees' And Employers' Costs By An Average Of 49 Percent And 13 Percent Respectively. "The Las Vegas Metro Chamber has reported that it was able to negotiate terms, such as a two-year rate lock, to prevent precisely the sort of premium volatility that made the individual and small-group markets untenable before the Final Rule. Specifically, their plan reduced employees' and employers' costs by an average of 49% and 13%, respectively." ("Successful Association Health Plans," U.S. Chamber Of Commerce, Accessed 11/1/19)
  • In Southern Nevada, Clark County's AHP Allows Members To Save Up To 30 Percent On Annual Premiums. "The Clark County Health Plan Association in Southern Nevada, led by the Henderson Chamber of Commerce, covers more than 10,000 people. Since September 2018, it has offered a range of health plans for working owners and small businesses that save members up to 30% on annual premiums, with no rate increases until summer or fall of 2020." ("Successful Association Health Plans," U.S. Chamber Of Commerce, Accessed 11/1/19)
  • The Lubbock, Texas Chamber Of Commerce's AHP Offered Savings Of Up To 30 Percent On Premium Rates. "The Lubbock Chamber of Commerce created an association health plan that offered several plan designs and resulted in similar savings of up to 30% on premium rates." ("Successful Association Health Plans," U.S. Chamber Of Commerce, Accessed 11/1/19)

Expanding Health Reimbursement Arrangements (HRAs)

The Trump Administration Issued A Rule To Expand Health Reimbursement Arrangements (HRAs), Which Allow Workers Use Money From Their Employer To Buy The Insurance Of Their Choice On The Individual Market. "President Donald J. Trump is expanding Health Reimbursement Arrangements (HRAs), opening new coverage options for American workers. The Trump Administration has finalized a rule to expand HRAs, giving businesses a better way to offer health insurance coverage. Under the rule, employers will be able to provide their workers with tax-preferred funds to pay for the cost of health insurance coverage that workers purchase in the individual market. This rule will particularly benefit small businesses that face significant costs in offering a traditional group health plan and businesses that do not currently offer coverage." ("President Donald J. Trump Is Working To Improve Health Insurance Coverage For American Workers And Help Small Businesses," The White House, 6/14/19)

PRESIDENT TRUMP HAS TAKEN ACTION TO PROVIDE RELIEF FROM OBAMACARE

Eliminating The Individual Mandate Penalty

President Trump's Tax Cuts Eliminated Obamacare's Burdensome Individual Mandate Penalty, Which Forced Americans To Buy Health Insurance Whether They Wanted To Or Not. "President Trump's historic tax reform legislation removed the burdensome individual mandate tax penalty. Obamacare's individual mandate coerced people into buying health insurance they did not want and burdened taxpayers because the plans are so heavily subsidized." (Fact Sheets, "President Donald J. Trump's Healthcare Actions To Expand Choices And Lower Costs Are Producing Real Results," The White House, 2/9/19)

  • "Many Experts Now View The Individual Mandate As A Policy That Did Little To Increase Health Coverage." (Sarah Kliff, "Republicans Killed the Obamacare Mandate. New Data Shows It Didn't Really Matter.," The New York Times¸ 9/21/20)

In 2016, Nearly 5 Million Americans Were Forced To Pay The Individual Mandate Penalty, Costing Them $3.6 Billion. ("Obamacare's Poverty Tax: Americans Paying Individual Mandate Tax Penalty," Senator Steve Daines, 2016)

  • 77 Percent Of These Taxpayers Earned Less Than $50,000 A Year. ("Obamacare's Poverty Tax: Americans Paying Individual Mandate Tax Penalty," Senator Steve Daines, 2016)
  • 34 Percent Of These Taxpayers Earned Less Than $25,000 A Year. (Alex Hendrie And Gillian Richards, "GOP Tax Cuts Abolished Obamacare Individual Mandate Tax," Americans For Tax Reform, 10/9/18)

Repealing Obamacare's Independent Payment Advisory Board (IPAB)

In February 2018, President Trump Signed Legislation Repealing Obamacare's Independent Payment Advisory Board (IPAB). "This week, Congress did away with another unpopular provision: the law's Independent Payment Advisory Board. The IPAB, which has been unfairly labeled a rationing board or 'death panel,' was designed to help tame runaway Medicare costs, should they ever arise." (Margot Sanger-Katz, "Another Of Obamacare's Unloved Provisions Is Gone," The New York Times, 2/9/18)

  • In February 2018, President Trump Signed H.R. 1892, The Bipartisan Budget Act Of 2018, Which Included A Provision That Repealed IPAB. ("H.R. 1989 – The Bipartisan Budget Act Of 2018," Congress.gov, Accessed 11/4/19)

The IPAB Was Viewed As Unpopular Among Both Democrats And Republicans. "But the idea was never particularly popular, even in the Congress that voted for it. The IPAB would have taken away Congress's power to make the cost-saving choices it wanted — or its choice to avoid them." (Margot Sanger-Katz, "Another Of Obamacare's Unloved Provisions Is Gone," The New York Times, 2/9/18)

Eliminating The Cadillac Tax, Health Insurance Tax, And Medical Device Tax

In 2019, President Trump Signed Into Law A Bill That Repealed "Three Significant Components Of Obamacare." "You can be forgiven for not having noticed, but at the tail end of 2019, Congress repealed three significant components of Obamacare. The three repealed provisions were all taxes, each of which was included in the initial legislation as a way of raising revenue to pay for the hundreds of billions in spending the law called for." (Peter Suderman, "Congress Repealed Major Elements Of Obamacare And Almost No One Noticed," Reason, 1/7/20)

  • The Bill Repealed Obamacare's "Cadillac" Tax, Which Would Have Cost Taxpayers $197 Billion. "By far the biggest of the three was the so-called Cadillac tax, which was expected to raise about $197 billion over the next decade." (Peter Suderman, "Congress Repealed Major Elements Of Obamacare And Almost No One Noticed," Reason, 1/7/20)
  • The Bill Repealed The Health Insurance Tax, Which Would Have Cost Taxpayers $150 Billion. "Congress also nixed the law's health insurance tax, projected to raise $150 billion over 10 years." (Peter Suderman, "Congress Repealed Major Elements Of Obamacare And Almost No One Noticed," Reason, 1/7/20)
  • The Bill Repealed The Medical Device Tax, Which Would Have Cost Taxpayers $25.5 Billion. "[And] the medical device tax, projected to raise $25.5 billion." (Peter Suderman, "Congress Repealed Major Elements Of Obamacare And Almost No One Noticed," Reason, 1/7/20)

Donald J. Trump, Campaign Press Release - Obamacare Premiums Are Falling Under President Trump Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/346814

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