/ Modified sep 26, 2013 3:56 p.m.

Health Exchange to Open; AZ Rates Below National Average

Affordable Care Act rollout starts with federally run insurance exchange, including eight insurers.

The rates for health insurance plans on Arizona's federal run exchange are fifth lowest in the country and are running below the national average, a federal report said Thursday.

Under the Affordable Care Act, the Arizona insurance marketplace has eight insurers and will offer more than 100 health plans, according to new data from the U.S. Department of Health and Human Services.

The health plans are offered in four categories that have tiered pricing, and the data show Arizona has some of the lowest premiums for health plans available on the exchanges.

“There’s obviously a lot of competition," said Kathleen Oestreich, CEO of Meritus, a nonp[rofit health insurance cooperative. "Some of the markets only have one or two or three competitors. When you have eight, that creates a competition that’s going to make insurers think about their price points."

Oestreich said another factor keeping the state's rates low may be that insurance companies price to what the current uninsured population can afford.

The average of lowest cost plans in Arizona range from $214 to $252, the federal data showed.

People can begin enrollment for plans on the online marketplaces starting Tuesday.

By posting comments, you agree to our
AZPM encourages comments, but comments that contain profanity, unrelated information, threats, libel, defamatory statements, obscenities, pornography or that violate the law are not allowed. Comments that promote commercial products or services are not allowed. Comments in violation of this policy will be removed. Continued posting of comments that violate this policy will result in the commenter being banned from the site.

By submitting your comments, you hereby give AZPM the right to post your comments and potentially use them in any other form of media operated by this institution.
AZPM is a service of the University of Arizona and our broadcast stations are licensed to the Arizona Board of Regents who hold the trademarks for Arizona Public Media and AZPM. We respectfully acknowledge the University of Arizona is on the land and territories of Indigenous peoples.
The University of Arizona