Private Health Insurance: Factors Affecting Premiums, Federal Policy, & Tax Credits

Most Americans are covered by private health insurance, which they either obtain through employment or purchase individually. Insurance premiums – the payments made to buy that coverage by enrollees or by other parties on their behalf – are high and rising. The Congressional Budget Office and the staff of the Joint Committee on Taxation (JCT) projected that in 2016, the average premium for an employment-based insurance plan will be about $6,400 for single coverage and about $15,500 for family coverage. Average premiums for coverage purchased individually (in what is called the non-group market) are also high – but not quite as high as average employment-based premiums, mostly because non-group coverage is less extensive and thus requires enrollees to make higher out-of-pocket payments when they receive care. This book reviews the factors affecting premiums, federal policies and tax credits in private health insurances.