Written by Michael LaPick
Healthcare Writer
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Key Findings
- The average national benchmark premium in 2021 is $443 per month.
- The premium fell by 1.7% in 2021, for the third straight drop since 2019.
- Benchmark premiums fell in 43 states in 2021.
The cost of Obamacare (aka the Affordable Care Act) plans fell for a third straight year in 2021.
That’s according to new data analyzed by the Urban Institute.Â
The report shows that the national average benchmark premium offered under the Affordable Care Act fell by 1.7% from 2020 to 2021. (The benchmark plan is the second-cheapest silver plan in an area.)
That follows a 3.2% fall in 2020 and a 1.2% drop in 2019.Â
Easing prices come after a 31.9% jump in 2018 following the Trump administration’s announcement that the government would no longer reimburse insurers for cost-sharing reductions.
The Urban Institute looked at the cost of benchmark silver plan premiums for a 40-year-old nonsmoker, using data from Healthcare.gov for 36 states and from 15 state Marketplace websites.Â
Easing costs for Obamacare plans contrast with 4% hikes in costs for employer-sponsored health insurance in 2019 and 2020.
States with the Cheapest Obamacare in 2021
At $292 per year, Minnesota has the cheapest average benchmark premium in 2021.
Minnesota’s premium is more than $150 less than the average national benchmark premium of $443 per month (before a tax credit).
The five cheapest states for premiums in 2021 are:
- Minnesota: $292
- New Hampshire: $325
- Rhode Island: $328
- New Mexico: $329
- Michigan: $335
The five priciest states for premiums in 2021 are:
- Wyoming: $782
- Alaska: $674
- West Virginia: $671
- Nebraska: $579
- South Dakota: $575
In total, average premiums for health insurance throughout the country fell in 43 states in 2021.
The Urban Institute says that premiums tend to be lower in states with higher numbers of competing insurers, states that expanded Medicaid and adopted reinsurance, and those with less hospital consolidation.Â
Affordable Care Act Benchmark Premiums 2017-2021
Premiums Shaped by Market Competition and Local Policies
Rising competition helped to slow premium growth.Â
In both 2020 and 2021, the Urban Institute says insurers boosted their participation in Marketplaces and added plans in new states.
The analysis shows the number of insurers participating in the Marketplace grew from 166 in 2017 to 224 in 2021.Â
State policy moves like reinsurance programs also helped to slow the rise in premiums, as did the expansion of Medicaid.
The effect of the COVID-19 pandemic on the Marketplace remains to be seen. But the Urban Institute says it left insurers with surpluses as Americans put off non-essential medical care.
ACA Benchmark Premiums Ranked by Cheapest Plan in 2021
| State | 2017 | 2018 | 2019 | 2020 | 2021 | Rank |
|---|---|---|---|---|---|---|
| Minnesota | $442 | $380 | $333 | $312 | $292 | 1 |
| New Hampshire | $267 | $475 | $402 | $405 | $325 | 2 |
| Rhode Island | $261 | $311 | $336 | $332 | $328 | 3 |
| New Mexico | $255 | $424 | $366 | $346 | $329 | 4 |
| Michigan | $265 | $368 | $373 | $351 | $335 | 5 |
| Maryland | $309 | $456 | $419 | $397 | $339 | 6 |
| Colorado | $340 | $438 | $496 | $374 | $351 | 7 |
| Massachusetts | $252 | $315 | $330 | $354 | $355 | 8 |
| Ohio | $263 | $364 | $367 | $360 | $358 | 9 |
| New Jersey | $339 | $411 | $348 | $389 | $367 | 10 |
| Washington | $247 | $336 | $388 | $389 | $374 | 11 |
| District of Columbia | $298 | $324 | $393 | $414 | $384 | 12 |
| Arkansas | $302 | $364 | $380 | $365 | $387 | 13 |
| Nevada | $303 | $431 | $412 | $379 | $387 | 14 |
| California | $335 | $424 | $446 | $426 | $397 | 15 |
| Indiana | $275 | $344 | $338 | $392 | $398 | 16 |
| North Dakota | $334 | $309 | $396 | $333 | $410 | 17 |
| Texas | $287 | $404 | $419 | $415 | $410 | 18 |
| Arizona | $539 | $517 | $464 | $438 | $411 | 19 |
| Illinois | $356 | $488 | $474 | $425 | $413 | 20 |
| Oregon | $321 | $395 | $433 | $439 | $418 | 21 |
| Maine | $378 | $575 | $531 | $499 | $430 | 22 |
| Wisconsin | $359 | $524 | $519 | $478 | $432 | 23 |
| Montana | $450 | $522 | $553 | $472 | $434 | 24 |
| Pennsylvania | $369 | $526 | $457 | $440 | $440 | 25 |
| Georgia | $320 | $489 | $457 | $438 | $442 | 26 |
| US average | $357 | $472 | $466 | $451 | $443 | 27 |
| Kentucky | $266 | $401 | $433 | $460 | $444 | 28 |
| Florida | $336 | $476 | $485 | $472 | $449 | 29 |
| Tennessee | $471 | $741 | $546 | $509 | $451 | 30 |
| Mississippi | $332 | $520 | $521 | $484 | $457 | 31 |
| Missouri | $369 | $520 | $491 | $479 | $462 | 32 |
| Utah | $311 | $550 | $539 | $481 | $463 | 33 |
| Hawaii | $347 | $456 | $503 | $471 | $467 | 34 |
| Kansas | $362 | $485 | $528 | $486 | $469 | 35 |
| Virginia | $318 | $524 | $558 | $517 | $470 | 36 |
| South Carolina | $390 | $524 | $557 | $509 | $471 | 37 |
| Iowa | $332 | $756 | $731 | $689 | $474 | 38 |
| Oklahoma | $503 | $658 | $661 | $546 | $485 | 39 |
| North Carolina | $540 | $618 | $611 | $543 | $489 | 40 |
| Louisiana | $413 | $487 | $461 | $497 | $492 | 41 |
| Idaho | $355 | $479 | $486 | $521 | $494 | 42 |
| Connecticut | $436 | $541 | $472 | $565 | $519 | 43 |
| Delaware | $423 | $591 | $685 | $548 | $522 | 44 |
| Alabama | $468 | $556 | $544 | $551 | $550 | 45 |
| Vermont | $492 | $505 | $517 | $662 | $574 | 46 |
| New York | $454 | $498 | $566 | $591 | $575 | 47 |
| South Dakota | $457 | $495 | $526 | $562 | $575 | 48 |
| Nebraska | $474 | $757 | $747 | $676 | $579 | 49 |
| West Virginia | $462 | $532 | $585 | $622 | $641 | 50 |
| Alaska | $927 | $727 | $714 | $721 | $674 | 51 |
| Wyoming | $501 | $861 | $860 | $877 | $782 | 52 |
Source: "Marketplace Premiums and Participation in 2021." urban.org. (Accessed June 15, 2021)
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