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State-Based Marketplaces Outperform Federally-Facilitated Marketplaces
Jane M Zhu1, Daniel Polsky2, Yuehan Zhang1
1University of Pennsylvania, Philadelphia, PA.
LDI Issue Brief
|July 12, 2018
Summary
State-based marketplaces (SBMs) showed better performance than federally-facilitated marketplaces (FFMs) from 2016-2018. SBMs experienced slower premium growth and more stable enrollment compared to FFMs.
Area of Science:
- Health Policy
- Health Insurance Markets
- Healthcare Economics
Background:
- Federal regulatory changes prompted state-based marketplaces (SBMs) to implement stabilization strategies.
- Comparison between state-based and federally-facilitated marketplaces (FFMs) is crucial for understanding market performance.
Purpose of the Study:
- To compare the performance of SBMs and FFMs between 2016 and 2018.
- To analyze the impact of state-level interventions on individual health insurance markets.
Main Methods:
- Comparative analysis of marketplace data from 2016-2018.
- Examination of key performance indicators including premium changes, carrier participation, and enrollment figures.
Main Results:
- SBMs exhibited slower premium increases (43%) compared to FFMs (75%).
- SBMs experienced fewer carrier exits than FFMs.
- FFM participation declined by 10%, while SBM enrollment remained stable, increasing by 2%.
Conclusions:
- State-based marketplaces demonstrated greater stability and slower premium growth than federally-facilitated marketplaces during the study period.
- Marketplace performance varies significantly by state and appears to be influenced by marketplace type.
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