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Six insurers continue to offer plans for 2023; Premiums increased modestly for 2023
Louisiana utilizes the federally run health insurance exchange for enrollment. Six carriers offer plans in the exchange with varying coverage areas; in most parts of the state, there are at least three or four insurers offering plans for 2023.
Average rates increased modestly for 2023, with average rate changes ranging from a significant decrease for Louisiana Health Services Indemnity Company (BCBSLA) to an increase of more than 10% for Louisiana Healthcare Connections.
Louisiana uses the federally facilitated exchange, so residents use HealthCare.gov to enroll in exchange plans.
Louisiana is among the 26 states that initially left all responsibility for its health insurance marketplace to the federal government. Former Gov. Bobby Jindal repeatedly rejected a state-run exchange and even returned a $1 million federal planning grant. He also refused to expand Medicaid under the ACA, although Governor John Bel Edwards reversed Jindal’s position on Medicaid expansion, and eligibility was expanded in mid-2016.
The open enrollment period for individual/family coverage runs from November 1 through January 15 in Louisiana. This is true both on-exchange and off-exchange.
Enrollments need to be completed by December 15 in order to have coverage effective January 1; enrollments completed in the final month of open enrollment have February 1 effective dates.
Outside of open enrollment, a qualifying event is generally necessary to enroll or make changes to your coverage. But through at least the end of 2025, there’s an ongoing enrollment opportunity for people who are eligible for premium subsidies and whose household income doesn’t exceed 150% of the poverty level.
If you have questions about enrollment opportunities, you can learn more in our comprehensive guide to open enrollment and our comprehensive guide to special enrollment periods.
Before premium subsidies are applied, the average premium in Louisiana’s exchange was $764/month as of early 2022. But nearly 93% of Louisiana exchange enrollees received premium subsidies at that point, which offset the vast majority of the cost (the average subsidy was about $655/month). Subsidies are larger than they used to be, thanks to the American Rescue Plan.
Subsidies are based on the cost of the benchmark plan, so they vary from one year to the next. For 2023, the average benchmark plan in Louisiana costs $565/month, up from $541 in 2022. So subsidies are a bit larger for 2023.
There are six insurers that offer exchange plans in Louisiana for 2023, and all of them also offered coverage in 2022 (two were new that year; UnitedHealthcare and Ambetter from Louisiana Healthcare Connections both joined the exchange for 2022).
The following insurers offer plans in the Louisiana exchange, with plan availability varying from one location to another:
In 2014, plans were available in Louisiana’s exchange from Louisiana Health Service and Indemnity Company (LHSIC), HMO Louisiana, Louisiana Health Cooperative (an ACA-created CO-OP), Humana, and Vantage Health Plans.
UnitedHealthcare joined the exchange in Louisiana for 2015, bringing the total number of participating insurers to six.
But in July 2015, the Louisiana Health Cooperative announced that it would not participate in 2016, and that existing policies would terminate at the end of 2015. Louisiana Health Cooperative was only the second CO-OP to fail (after CoOpportunity in Nebraska and Iowa), but ultimately ten more CO-OPs closed their doors by the end of 2015, and only three (out of an original 23) were still operational as of 2022.
At the end of 2016, UnitedHealthcare also exited the individual market in Louisiana, as was the case in most states where United offered exchange plans in 2016. United insured about 13% of the people who enrolled in exchange plans in Louisiana for 2016.
Humana announced on February 14, 2017, that they would exit the individual market nationwide at the end of 2017, so their plans were no longer available in Louisiana as of 2018. By 2018, coverage was only available from LHSIC, HMO Louisiana (both owned by the same parent company), and Vantage Health Plans.
That continued to be the case in 2019, but Christus joined the exchange for 2020, bringing the total number of insurers back up to four.
And for 2022, UnitedHealthcare returned to the exchange in Louisiana, and Ambetter from Louisiana Healthcare Connections also joined the exchange, bringing the number of participating insurers to six.
According to ratereview.healthcare.gov, Louisiana’s exchange insurers implemented the following average rate changes for 2023:
The rates were reviewed by the Louisiana Department of Insurance for actuarial justification and compliance with state and federal requirements. But as is the case in many states, Louisiana officials don’t have the authority to reject rate increases, they can only deem them justified or unjustified.
Although average rate changes and the overall weighted average rate change can give us an indication of how stable a state’s market is, these numbers aren’t particularly useful in terms of understanding how a given enrollee’s rates will change. There are a few reasons for this:
At the end of the open enrollment period for 2022 coverage, there were 99,626 people enrolled in plans through Louisiana’s exchange, up from 83,159 people the year before.
2021 enrollment had been a record low, but 2022 enrollment climbed to the highest it had been since 2018.
Enrollment in Louisiana’s exchange had dropped substantially since 2016, but much of the decline in enrollment is due to the state’s expansion of Medicaid, which took effect in mid-2016 (as opposed to 2014, as was the case in many other states). During the COVID pandemic, states cannot terminate Medicaid enrollments even if a person’s income increases, and the widespread income/job losses have resulted in a much higher percentage of the population being deemed eligible for Medicaid nationwide. In Louisiana, Medicaid enrollment under the ACA’s Medicaid expansion rules had grown to more than 732,000 people by May 2022.
Here’s a look at how enrollment (during open enrollment) in private plans in Louisiana’s exchange has changed over time:
For perspective, here’s a look at how premiums have changed in Louisiana’s exchange since ACA-compliant plans debuted in 2014:
Seven insurers currently offer dental plans through the Louisiana marketplace. Learn about dental coverage options in Louisiana.
Louisiana enacted legislation in 2019 (SB173/Act412) that codified a variety of ACA consumer protections into state law in the event that the ACA had been struck down in the Texas v. Azar/US (California v. Texas) lawsuit.
The Supreme Court ultimately upheld the ACA in a 6-3 ruling, but if the ACA had been overturned, Louisiana’s law called for plans to continue to be guaranteed-issue (regardless of medical history) and include coverage for the essential health benefits. Insurers would have been able to use a 5:1 age-based rating ratio (as opposed to the ACA’s 3:1 ratio), but would not have been able to place dollar caps on lifetime or annual benefits.
The legislation contained a significant catch however, in that it noted that the various consumer protections (such as guaranteed-issue coverage and essential health benefits mandates) would only continue to apply if premium subsidies continued to be available from the federal government, or in a similar amount from the state government.
That latter option was unlikely, given the amount of funding that would be needed, but the law tasked Louisiana’s Insurance Commissioner with establishing the Louisiana Guaranteed Benefits Pool, which would have been a risk-sharing program that would cover some of the cost of insuring people with high-cost health care needs in the individual market. This concept is often referred to as “invisible risk-sharing” and it’s the basic concept behind reinsurance, which several states have established (Louisiana was interested in the model that Maine had implemented).
If the ACA had been overturned in full, premium subsidies would have disappeared, and so would federal funding for Medicaid expansion. But Louisiana was working on an actuarial analysis of an invisible risk-sharing program to be presented to lawmakers as a means of keeping coverage more affordable than it would otherwise be.
After Act 412 was enacted, Louisiana’s Attorney General, Jeff Landry, praised its passage, saying that “Louisiana has now become the country’s leader in protecting patients with pre-existing conditions.” While there are several states that had enacted similar legislation well before Louisiana, the great irony in Landry’s comment was that he was among the plaintiffs in the lawsuit that sought to overturn the ACA. Without the Texas v. US (California v. Texas) case — in which Louisiana argued that the ACA was unconstitutional — there would not have been a need for states to scramble to enact their own laws, with woefully inadequate funding, in an effort to protect people with pre-existing conditions.
Reinsurance is a system under which insurers are compensated for high-cost claims, and the result is lower premiums for everyone in the insurance pool. The ACA included a federal reinsurance program, but it was temporary and only lasted through the end of 2016. To mitigate rising premiums and stabilize their individual insurance markets, several states have since implemented reinsurance programs, which have successfully suppressed overall average premiums.
Louisiana appeared poised to implement reinsurance for 2019 as well; the concept had bipartisan support in the legislature and was also supported by Insurance Commissioner James Donelon.
H.B.246, which passed and was signed into law in late May, authorized the state to seek a 1332 waiver to implement a reinsurance program. But H.B.472, which would have created the Louisiana Health Reinsurance Association and authorized the state to levy a fee on Louisiana health insurers to fund the state’s portion of the cost of the reinsurance program, passed the House but stalled in the Senate.
While the bills to authorize the reinsurance program and 1332 waiver were still making their way through the legislature, the Louisiana Department of Insurance had already drafted a 1332 waiver and opened it up for public comment, through May 9. But since the legislation to create and fund the state reinsurance program did not pass, the proposed 1332 waiver wasn’t submitted to CMS. It’s unclear whether the issue might be reconsidered in 2019, as it will likely depend on the state of the insurance market at that point. But for the time being, reinsurance isn’t going anywhere in Louisiana.
If lawmakers had passed H.B.472, the Louisiana Health Reinsurance Association would have sought federal funding for the reinsurance program with a 1332 waiver, and would have imposed a fee on health insurers in Louisiana (including those in the individual and group markets, as well as self-insurers and third-party administrators, but not on private Medicaid or Medicare insurers), of not more than $2.50 per member per month, and projected to be about $1.40 per member per month.
The federal funding, estimated at $100 million, would have been generated by the savings that the federal government would have realized due to the lower premiums that would have applied in Louisiana if the reinsurance program had been implemented. Since premiums would have been lower than they’ll be without the reinsurance program, premium subsidies (paid by the federal government) would also have been lower. Instead of having the federal government keep the savings, a 1332 waiver would have sought to allow the state to use the savings to fund the reinsurance program, as other states have done.
The Louisiana Department of Insurance projected that premiums would be an average of 17.3% lower with reinsurance. There would have been no significant change in net (after subsidy) premiums for people who get premium subsidies, but premiums would have been lower for people who have to pay the full premium without the help of premium subsidies. This would likely have resulted in more people enrolled in coverage, since coverage would have become more affordable for that population. The draft 1332 waiver noted that enrollment was expected to be up to 7.5% higher in 2019 if the reinsurance program had been enacted.
It’s noteworthy that reinsurance programs are much less important in 2021 and 2022, due to the American Rescue Plan. That legislation temporarily eliminated the “subsidy cliff” by removing the income cap for subsidy eligibility (normally set at 400% of the poverty level) and making more people eligible for subsidies. Reinsurance really only benefits people who aren’t eligible for subsidies. But it will again be an important approach (in the states that use it) as of 2023, if the American Rescue Plan’s subsidy enhancements are not extended.
In April 2017, the Louisiana House of Representatives passed H.B.407 almost unanimously, by a 94-3 vote. In May, the Senate passed it, 32-4, and the Governor signed it into law in early June.
The measure allows insurance brokers in the individual market to charge fees — paid by consumers — in trade for their assistance. The practice of charging broker fees was previously banned under Louisiana law (as is the case in most states), because the general wisdom has long been that brokers receive adequate compensation via commissions from insurance companies.
But the ACA resulted in sharply lower commissions in the individual market, which were eliminated altogether by some insurers after the first few unprofitable years of ACA-compliant coverage.
The commission reductions began in 2011 when the medical loss ratio rules went into effect, limiting individual market insurers’ administrative costs (including broker commissions) to no more than 20% of premiums collected.
And in the early years of ACA-compliant plans, insurers struggled to make a profit with the sicker-than-expected risk pool in the individual market, which is now guaranteed-issue, regardless of applicants’ medical history. As a result, insurers sharply scaled back broker commissions, and eliminated them altogether in some areas.
H.B.407 allows brokers to set their own fees. But brokers have to disclose their fees to prospective clients, and would have to inform them that they could avoid the broker fee by using a navigator or HealthCare.gov.
The individual insurance market started to become profitable again in 2017/2018. Starting in 2019, insurers began joining or rejoining the exchanges in many states, and that trend has continued ever since (for 2023, we saw some significant insurer exits along with numerous entries; the total number of participating exchange insurers across all HealthCare.gov states did still increase again for 2023). Broker commissions have rebounded and some insurers even offer bonuses to high-performing brokers in the individual market. So there is much less need for broker fees, and it’s unlikely that many brokers pursue this option anymore, given the competitive disadvantage it would give them.
State Exchange Profile: Louisiana
The Henry J. Kaiser Family Foundation overview of Louisiana’s progress toward creating a state health insurance exchange.
Louisiana Department of Insurance, Office of Health Insurance
Assists consumers who have purchased insurance on the individual market or who have insurance through an employer who only does business in Louisiana.
(225) 219-4770 / Toll Free: (800) 259-5301
Short-term health insurance in Louisiana is not subject to the restrictions, as long as plans have terms of no more than six months.
Healthy Louisiana, the state's Medicaid expansion program, covers 750,000 low-income adults as of 2022.
Nearly 17% of Louisiana Medicare beneficiaries are under 65 (versus about 12% nationwide).
Find affordable individual and family plans, small-group, short-term or Medicare plans.
Louisiana's Medicaid estate recovery program does not apply to the first $35,000 of a deceased beneficiary's home value.
Learn about adult and pediatric dental insurance options in Louisiana, including stand-alone dental and coverage through the state's marketplace.
Our state guides offer up-to-date information about ACA-compliant individual and family plans and marketplace enrollment; Medicaid expansion status and Medicaid eligibility; short-term health insurance regulations and short-term plan availability; and Medicare plan options.