Aug. 14—Nearly half of the people with individual insurance who switch to coverage on the coming federal health insurance marketplaces will receive federal subsidies, according to a new assessment.

A Kaiser Family Foundation report issued Aug. 13 concluded 48 percent of people buying their own insurance will qualify for federal premium tax credits to reduce their premiums for plans purchased in the marketplaces, formerly known as exchanges.

It estimated that the second-lowest-cost silver plan premium, on which the subsidies are based, will average $8,250 in 2014. The premiums will be cut by an average of $5,548, or 66 percent, per family by the federal premium subsidies. 

Among all individuals and families with individual market coverage who move to the exchanges, premium subsidies will average $2,672 and will reduce the cost of the benchmark silver plan by 32 percent, according to the Kaiser report.

The report’s authors note that the tax credits would subsidize a higher share of the premium for lower-cost plans. For example, subsidies would reduce the premium of a bronze level plan by an average of 77 percent.

The report did not calculate the costs of expected enrollee cost sharing, such as deductibles and copays, in the marketplace plans. Much smaller subsidies also are available to help enrollees cover marketplace plans’ cost sharing.

Publication Date: Wednesday, August 14, 2013