For those seeking affordable health coverage through the Patient Protection and Affordable Care Act exchange system next year, low-cost silver plans are shaping up as the choice where customers gets the most bang for the buck.

An analysis by Washington, D.C.-based healthcare consulting firm Avalere Health LLC found that premium increases projected for exchange plans next year will be lower among certain silver plans. In fact, Avalere’s analysis of existing plan data found some silver plans will be cheaper next year, yet will still cover a substantial percentage of basic coverage elements as stipulated by the PPACA.

“In most states, proposed premiums for lower-cost silver plans increased less dramatically or even went down for 2017, compared to higher-cost plans on the same tier,” Avalere Senior Vice President Caroline Pearson wrote. ”Lower-cost silver plans tend to be most popular with consumers, making this portion of the market more competitive as plans seek to attract enrollees.”

Most states are reporting average silver plan increases below 15 percent, some as low as 5 percent (Washington state). Avalere said silver plans spend an average of 70 percent for the essential health benefits as set forth by the reform act, compared to 60 percent for bronze plans and 80 percent and 90 percent respectively for the higher cost gold and platinum plans.

Thus, given the lower average increases for silver plans, Avalere predicts they will once again prove to be the most popular exchange plans.

In its report, Avalere also said several factors are converging that will result in lower exchange enrollment in 2017. This year was already lower than projected by the Congressional Budget Office, by almost half. An earlier study, which appeared in Modern Healthcare, suggested that Medicaid expansion is siphoning customers away from the exchange plans.

The upshot, Avalere said, is that the exchange risk pool is getting riskier, so insurers are jacking up premiums and cost-sharing on certain plans. However, the popularity of the low-cost silver plans has created a lively competition for customers among insurers, leading to the lower increases.

Instant Insights /

PPACA silver plans to be winners again in 2017, report says

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