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Study: Vermont has highest health insurance premiums in US

Submitted by tim on

Vermont Business MagazineNew Yorkresidents pay the most for basic health insurance and Vermont is second, but has the highest monthly premiumat$469a month, compared withNew Mexico, which has the lowest monthly premium at$181a month.New Mexicopays the leastfor basic health insurance, according to a new study released today by leading personal finance website GOBankingRates.com.The study compared silver plans ― the most popular plan according to the Department of Health and Human Services ― offered through the national or state-level insurance exchanges administered through the Affordable Care Act.

The lowest-cost silver plans for each state were ranked based on the favorability of the following cost factors:

  • The plan's monthly premium
  • The deductible
  • The emergency care copay
  • The copay for care from a primary physician

"Higher insurance costs in many states are tied to high costs of living or being in rural areas," saidElyssa Kirkham, the lead GOBankingRates reporter on the study. "Where costs of living are high, likeNew Yorkor Vermont, care is also likely to be more expensive, a cost which insurers pass to enrollees through higher premiums."

"Competition is another key factor of health insurance costs," said Kirkham. "In rural states likeWyomingand Oklahoma, fewer residents means a smaller health insurance market with fewer options, where insurers can charge more without losing customers. Of course, subsidies can offset these costs, but this form of assistance also varies widely from state to state," she said.

The 10 States With the Highest Health Insurance Costs

  1. New York
  2. Vermont
  3. South Carolina
  4. Alabama
  5. New Jersey
  6. Mississippi
  7. Oklahoma
  8. Indiana
  9. Delaware
  10. Wyoming

2. Vermont

Vermont's cheapest silver option, the Silver CDHP Plan from Blue Cross and Blue Shield of Vermont, has the highest monthly premium of any state, charging $469 a month, or $5,628 a year in premiums. The yearly cost on this plan is estimated at $7,317 on average by Vermont's exchange site and up to $11,377 in a "bad year" with many health expenses.

These high costs are offset somewhat by a low deductible of just $1,425, one of the lowest of the silver plans included in this ranking. The policyholder is still responsible for some costs once the deductible is met, however, such as a 25 percent co-insurance on emergency care and a 10 percent co-insurance charge for visits to a primary care physician. Vermont's health insurance exchange, Vermont Health Connect, added a comparison tool to its website in December 2015 that allows shoppers to compare out-of-pocket costs and premiums on different plans.

The 10 States With the Lowest Health Insurance Costs

  1. New Mexico
  2. Utah
  3. California
  4. Texas
  5. Pennsylvania
  6. Michigan
  7. District of Columbia
  8. Hawaii
  9. Oregon
  10. Idaho

Additional insights:

  • The state with the highest monthly premium isVermont, at$469a month, compared withNew Mexico, which has the lowest monthly premium at$181a month.
  • Primary doctor copays vary widely by state.West VirginiaandIndianahave no copays, but Californians' copays are the highest ―$250.
  • Deductible costs range from$1,300inNorth Dakotato$6,850inSouth Carolina, which is more than five times the price.
  • DespiteNew Mexico'slow costs, many residents have encountered difficulties inJanuary 2016getting their health coverage due to a high volume ofDecember 2015health insurance applications still being processed.

50 States and D.C. Ranked by Health Insurance Costs

 

Here is the full ranking of the 50 states and the District of Columbia from best to worst, according to their health insurance costs for the silver plan with the lowest monthly premium in each state.

1 New Mexico 18 Minnesota 35 North Carolina
2 Utah 19 Virginia 36 Georgia
3 California 20 Iowa 37 Florida
4 Texas 21 Nevada 38 Alaska
5 Pennsylvania 22 New Hampshire 39 Tennessee
6 Michigan 23 Maine 40 Missouri
7 District of Columbia 24 Kentucky 41 Colorado
8 Hawaii 25 North Dakota 42 Wyoming
9 Oregon 26 West Virginia 43 Delaware
10 Idaho 27 Washington 44 Indiana
11 Wisconsin 28 Ohio 45 Oklahoma
12 Connecticut 29 Montana 46 Mississippi
13 Arizona 30 Maryland 47 New Jersey
14 Louisiana 31 Arkansas 48 Alabama
15 Illinois 32 South Dakota 49 South Carolina
16 Kansas 33 Rhode Island 50 Vermont
17 Massachusetts 34 Nebraska 51 New York

About GOBankingRates

GOBankingRates.com is a leading portal for personal finance and consumer banking information, offering visitors the latest on everything from finding a good interest rate to strategies for saving money, investing for retirement and getting a loan. Its editors are regularly featured on top-tier media outlets, including U.S. News & World Report,Forbes, Business Insider, Daily Finance, Huffington Post and more. It specializes in connecting consumers with the best financial institutions and banking products nationwide.

LOS ANGELES,Jan. 20, 2016/PRNewswire/ --GOBankingRates.com