Wisconsin residents will pay an average of $361 a month for a mid-level plan on the health insurance exchange that opens for enrollment Tuesday, higher than the national average of $328, according to a federal report Wednesday.
The state's average premium for a mid-level plan on the exchange, an online marketplace offering a variety of private insurance plans, is the 14th highest among 47 states and the District of Columbia for which information was provided.
Depending on a person's age, income and location, monthly premiums in Wisconsin could be $96 or less after subsidies, or tax credits, are applied.
"Wisconsin is doing OK," said Bobby Peterson, executive director of ABC for Health, a non-profit law firm in Madison that helps people get health care. "We're not at the top of the list or the bottom."
J.P Wieske, spokesman for the Wisconsin Office of the Commissioner of Insurance, said rates will vary across the state's 16 insurance regions and by a person's age.
“It’s hard to understand what your rate is going to be given all those factors involved,” Wieske said. Once the exchange opens Tuesday, "people will be able to get a better look at what their options are,” he said.
The state hasn't released rates for plans on its exchange, which will be run by the federal government. An insurance commissioner office report early this month said premiums would go up by 10 percent for a 63-year-old in Kenosha and 125 percent for a 21-year-old in Madison. The report didn't factor in the subsidies or expanded services required on the exchange.
The new report by the U.S. Department of Health and Human Services shows average premiums on exchanges by state and doesn't compare them to rates today.
A 27-year-old in Wisconsin will pay $150 to $280 per month, depending on what type of coverage is chosen, the report said. That doesn't include the subsidies, available to people who make up to about $46,000 a year.
A 27-year-old making $25,000 could get a subsidy to reduce a mid-level premium of $238 to $145. The same person could get a cheaper plan for $96, though it would come with more out-of-pocket costs.
A family of four making $50,000 could get a subsidy to reduce a mid-level premium of $861 to $282. They could buy a different plan for $106.
Peterson said the federal report shows Wisconsin's rates won't be a high as some predicted. The state's special high-risk plan has 25,000 people, more than in most states, who will be shifting to the exchange. Insurance companies may have set rates higher in anticipation, Peterson said.
The state is shifting 92,000 adults with incomes above the poverty level off Medicaid, or BadgerCare, and onto the exchange. Even with the subsidies, it could be difficult for some to afford the premiums, Peterson said.
The federal report said premiums will generally be higher in Milwaukee than the state average. Rates weren't released for Madison or other cities in Wisconsin.
Wisconsin's exchange, at healthcare.gov, will offer 97 different health plans, most available only in certain parts of the state.
Enrollment begins Tuesday and continues through Dec. 15 for coverage beginning Jan. 1. That's when most Americans must have health insurance or pay a penalty under the Affordable Care Act, or "Obamacare."
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