First details released of Obamacare plans in Texas

Hundreds of people from Houston, Dallas, San Antonio and Austin unhappy at Gov. Rick Perryís shunning of an estimated $13 billion in federal funds, part of the Affordable Care Act or "Obamacare," that would expand Medicaid for up to 2.3 million Texans, according to state officials, protest at the Capitol in Austin, Texas Friday, Sept. 21, 2012. less Hundreds of people from Houston, Dallas, San Antonio and Austin unhappy at Gov. Rick Perryís shunning of an estimated $13 billion in federal funds, part of the Affordable Care Act or "Obamacare," that would ... more Photo: Alberto Martinez, Associated Press Photo: Alberto Martinez, Associated Press Image 1 of / 44 Caption Close First details released of Obamacare plans in Texas 1 / 44 Back to Gallery

Residents of the Houston area and Texas will have dozens of insurance plans from which to choose when marketplaces under the Affordable Care Act open Tuesday - with the average monthly premium costing as little as $52 for a family of four.

A report released Wednesday by the U.S. Department of Health and Human Services gives uninsured Houstonians and Texans the biggest glimpse into what they might pay for health coverage. However, Obama administration officials still won't identify the insurers or reveal plan details until the marketplaces actually open.

Marketplace plans will be categorized as gold, silver and bronze, based on premium and out-of-pocket costs. The lower the premium cost, the higher the out-of-pocket expense will be for consumers.

According to the report, 46 plans will be available in the Houston area. Statewide, residents will have 54 plans from which to choose. To put premiums into perspective, the weighted average was $305 per month for Texas' second-lowest-cost silver plan, to $211 per month for the state's lowest-cost bronze plan before tax credits would be applied, the report shows.

Nationally, an average of 53 plans will be in state marketplaces with consumers having a choice between at least two insurers. The weighted average cost was $328 per month for the second-lowest-cost silver plan to $249 per month for the lowest-cost bronze plan.

"That's a very good amount of choice available to people in Texas," said Gary Cohen, deputy administrator and director of the Center for Medicare & Medicaid Service's center for consumer information and insurance oversight. "The rates in Texas are looking good."

He and Health and Human Services Secretary Kathleen Sebelius discussed the report during a Tuesday conference call with reporters. The details were publicly released Wednesday.

Cohen said Texas' competitive insurance market probably helped generate the number of choices and costs available. The federal government has overseen creation of the state's insurance marketplace because Gov. Rick Perry, who opposes the 2010 health care law, declined to do it.

Premium averages in the report were based on plan information insurers submitted by Sept. 18, Cohen said. "I think these numbers are close, but they are averages," he said.

However, average monthly premium costs listed in the report could make it harder to persuade young people to buy insurance. Officials need young, healthy adults in the marketplace to offset the anticipated medical costs of older and more chronically ill consumers. The penalty in the first year for those who don't buy insurance is $95, which would be less than the cost of coverage.

The report shows that a 27-year-old Houstonian without a tax credit could pay $138 per month for the lowest-cost bronze plan. A family of four with a tax credit could pay $52 per month for the lowest-cost bronze plan.

Neither Cohen nor Sebelius explained how they would overcome such cost disparities and convince young people they need health insurance. Sebelius said the marketplace will offer many the chance to buy insurance. Six out of 10 people will pay less than $100 for coverage, she said.

"It will finally make health insurance work within their budgets," Sebelius said.