Insurance Premiums in Iowa and Nebraska Border Counties

April 21, 2014 Leave a comment


Lyons, Nebraska – Today, the Center for Rural Affairs released a new report examining how Nebraska’s decision not to participate in the Medicaid expansion program as provided by the Affordable Care Act (ACA) has contributed to higher health insurance premiums compared to Iowa.“Nebraska’s decision not to expand Medicaid as allowed under the ACA has changed its health insurance marketplace pool,” said Jon Bailey, Director of the Rural Public Policy Program at the Center for Rural Affairs and author of the report. “That changed pool has resulted in higher health insurance premiums for most Nebraskans.”

The decision has also left many lower-income Nebraskans in a “coverage gap” – making too much to qualify for Medicaid and too little to qualify for tax credits in the new health care insurance marketplace. Because of the health insurance they buy in the individual market, lower- and middle-class Nebraskans may suffer some of the greatest consequences of this decision, Bailey explained.

According to Bailey, in three of the four health plan levels (all except the Platinum level), Nebraskans in border counties have higher health insurance premiums than Iowans just across the border. In general, premium cost differences between the two states increase as consumers get older, and premium cost variations are greater for the lower level (Bronze and Silver) health plans. When age and health plan level are combined, the annual cost difference can be significant. For example, a hypothetical 60 year old Nebraska couple would pay nearly $500 more annually for a Bronze plan.

Read or download a full copy of the report at: http://files.cfra.org/pdf/Tale-of-Two-States.pdf

The report examines the ten Nebraska counties and six Iowa counties along the Missouri River that form the border between the states. These bordering counties form the core of two major metropolitan areas – Omaha, Nebraska, and Sioux City, Iowa. Outside of the metropolitan areas these counties are rural, made up of small towns and farms. These border counties share common backgrounds and history, have common economic environments, demographics, and have numerous other similarities.

“The cost variations for Bronze and Silver plans are important because those are the plans most people are purchasing on the health insurance marketplace, particularly lower- and middle-income consumers, continued Bailey. “The most recent data from the U.S. Department of Health and Human Services show that 83 percent select a Bronze or Silver plan in the federal-facilitated health insurance marketplace.”

“Most border county Nebraskans, therefore, are selecting plans with the greatest cost variations compared to Iowa border county residents,” Bailey concluded.

Filed under Community Tagged with , , , , , , ,

Center for Rural Affairs Testifies in Support of LB 887

January 31, 2014 Leave a comment


Lyons, Nebraska  –  Today, the Health and Human Services Committee is hearing public testimony on LB 887, the Wellness in Nebraska Act. LB 887 would expand Medicaid in Nebraska to provide coverage to Nebraskans making under 133% of the Federal Poverty Limit who are not otherwise qualified for Medicaid.

“For the health and well-being of Nebraska’s people, we urge the advancement of LB 887,” said Jon Bailey, Director of Rural Research and Analysis at the Center for Rural Affairs. “The failure of Nebraska to approve and implement the Medicaid expansion under the Affordable Care Act has created a coverage gap that an estimated 33,000 Nebraskans have fallen into. The coverage gap has real and significant ramifications for our citizens.”

According to Bailey’s testimony, there is essentially no help that that can be offered for Nebraskans that fall into the gap. They do not qualify for insurance marketplace tax credits because their incomes are too low. Consequently, even the least expensive insurance on the marketplace is generally unaffordable; and their employers do not provide health insurance.

“All that we can do and all that the ACA navigators can do is tell them the truth and send them on their way disappointed, frustrated and still uninsured,” explained Bailey.

The demographics, economy and the health insurance market in rural Nebraska make LB 887 critical for our rural residents. These people and their families rightfully deserve to be insured. It is simply immoral to enact a public policy of negligence that leaves them by the side of the road with no options and with the disappointment and frustration of being in the coverage gap. Most importantly, it is immoral to leave them without the ability to resolve their health care needs and without the tools to enhance their long-term health, Bailey testified.

“LB 887 will allow those in the coverage gap to become healthier and responsible health care consumers,” concluded Bailey.

To view or download a copy of Jon Bailey’s testimony for the Center for Rural affairs go to:

http://www.cfra.org/LB887Testimony

Filed under News Tagged with , , , ,