Insurance exchange premium growth in ERC region averaged 6.7% this year with wide variation; same variation but higher prices expected for 2017

May 26, 2016

A new analysis finds that insurance exchange premium growth over the last two years varied considerably between states. According to the Urban Institute, the average annual premium increase for the lowest cost Silver plan from 2014 to this year was 5.5% nationally and 4.2% for the ERC region. However individual ERC state annual rates varied considerably from New Hampshire where premiums dropped 5.1% on average to Delaware where premiums grew by 11.2%. This year ERC state premiums are higher than other regions, averaging $307/month for the lowest cost Silver plan; 8.4% higher than the US average. Vermont has the highest premiums in the region; Maryland and Pennsylvania are tied for lowest.


Premiums may jump far higher next year, according to new report by Avalere. Their analysis of proposed rate filings from the nine states where complete 2017 data is available includes Maryland, Maine, New York and Vermont. The report finds wide variation in premium increases across states, ranging from 5% in Washington to 44% in Vermont for the lowest cost Silver plan. As data is complete for only nine states and these proposed rates are subject to state review and negotiation, averages will likely change before premiums are set. It is also important to note that most consumers are protected from full premium costs with income-based subsidies.

  Average 2016 premium for lowest cost Silver Plan 2015-2016 relative change
CT $351 0.8%
DE 354 19.0
ME 309 0.8
MD 245 7.5
MA 247 1.5
NH 260 9.3
NJ 325 3.3
NY 372 8.1
PA 245 10.5
RI 259 6.1
VT 465 8.6
Northeast region 307 6.7
US average 283 8.3
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