The Cost of Health Insurance in Alaska
The average cost of health insurance in the state of Alaska is $9,356 per person based on the most recently published data. For a family of four, this translates to $37,424. This is $2,375 per person above the national average for health insurance coverage. However, health insurance costs vary significantly based on the cost of care and the population insured. The chart below shows the four major insurance types available in Alaska. The dollar amounts shown on the chart are the average cost in Alaska to insure people for each type of insurance.
Alaska Health Insurance Cost Per Person
Average cost calculations for comprehensive group and individual insurance is based on data reported to the state department of insurance. Group insurance is based on 38,329 enrollees and individual insurance is based on 22,152 enrollees. Supplementary vision and dental insurance contracts sold as riders to comprehensive insurance are not included. Medicaid costs are based on data from Macpac.gov divided by the number of people covered based on Kaiser Family Foundation data. Medicaid data includes both state and federal spending. Medicare costs are based on data from CMS.gov divided by the number of people covered based on Kaiser Family Foundation data. CMS data are from 2014, adjusted for health insurance cost inflation rates.
Number of People Covered by Health Insurance in Alaska
The chart below shows the number of people insured with each type of insurance plan available. The most recent reported year plus three years of history is shown.
Number of People Covered by Type of Health Insurance
Data from the Kaiser Family Foundation.
Trends identified in the above data include a decline in the number of people with both individual, group coverage. Over the same time period, the number of people enrolled in Medicaid and Medicare in Alaska has increased.
Health Care Market Competitive Dynamics
Many states, including Alaska, have laws requiring new health care facilities to be approved by special boards. These boards are known as “certificate of need” (CON) boards. The purpose of these boards is to certify there is need for new facilities. CON boards have the effect of reducing the level of competition, which results in higher prices for the services provided.
To better quantify the effect of legislation that minimizes competition, ValChoice has calculated the difference in health care cost between states with and without CON boards. Using a simple average calculation, states with CON requirements have an average cost for health care that is $664 more per person insured than states without CON requirements.
States included in the calculations as having CON requirements include the following: Alabama, Alaska, Arkansas, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire*, New Jersey, New York, North Carolina, Oklahoma, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Washington, West Virginia and Wisconsin*. Other states do not have CON board certification requirements.
*New Hampshire and Wisconsin are included as having CON requirements for the reason the recent modifications in CON laws have not yet had a material impact on the cost of health care in the state.