Subsidized federal marketplace health premiums average $82

Seven in 10 people who have signed up for government-subsidized health insurance coverage through federal marketplaces set up under the Affordable Care Act (ACA) have a premium of $100 a month or less, according to a new report from the Department of Health and Human Services (HHS).

Federal subsidies available for qualifying applicants have seemingly driven down the price of health care, with an average monthly premium of $82 for those choosing plans while assisted by tax credit, according to the new figures.

The report shows that 69 percent of people who selected a plan through the federal marketplace with tax credits had a monthly premium of $100 or less, and 46 percent had a premium of $50 or less.

That is compared with an average cost of $346 for insurance in the marketplace without subsidies.

The report, which does not include data on state-run exchanges, also shows that consumers were presented on average with at least five different insurance companies and 47 different plans, and that the middle-expense silver plan was the most popular.

“What we’re finding is that the marketplace is working. Consumers have more choices, and they’re paying less for their premiums,” Health and Human Services Secretary Sylvia Burwell said in a news release. “When there is choice and competition, everybody benefits.”

Supporters of the ACA had hoped that the act would encourage millions of Americans to take out insurance. Around 30 million Americans were uninsured before the ACA was enacted.

High premium costs were one of the central reasons people with lower incomes would forgo insurance coverage, it was thought. And with premiums of lower than $70 a month, coverage has expanded. An estimated 8 million people have signed up for coverage through the ACA, according to government figures.

The sign-up rate comes despite well-documented glitches with the online platform for users seeking health care.

Meanwhile, some problems still remain. A government document published in June shows that more than 2 million people who have health insurance under the ACA — around 1 in 4 of those who have signed up — have data discrepancies that could jeopardize their insurance coverage.

The discrepancies have led to a massive paperwork logjam for the government and could leave some consumers having to repay the government if they receive too large a subsidy, or see them lose coverage altogether.

Most of the issues stem from information related to income, citizenship or immigration status. HHS says the discrepancies are the result of outdated government data, and the “vast majority” of cases are being resolved in favor of the consumer.

Al Jazeera and wire services