Yesterday, CMS announced that premium costs for 2016 Silver benchmark plans (that’s the second lowest cost Silver plan) will increase by an average of 7.5% compared to 2015. However, there is significant variability in the differences ranging from an average 12.6% drop in premiums in Indiana (yes, that’s minus 12.6%) to an average increase of 25.8% in New Mexico. But this doesn’t necessarily mean that enrollees who qualify for financial assistance (which is 86% of enrollees) will see their share of cost decline or increase by a like percentage. So what will consumers really pay? To answer that question, you need to understand how premium tax credits work.
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