Obamacare to cost Americans an average of US$328 per month

Americans will pay an average of US$328 a month for a mid-tier health insurance plan when the Obamacare health exchanges open next week and most will qualify for government subsidies to lower that price, the government says.

The figure, based on data for approved insurance plans in 48 states, is the broadest national estimate for the cost of coverage when President Barack Obama's health care reform law takes full effect next year. The prices of the new plans are at the heart of a political debate over whether they will be affordable enough to attract millions of uninsured Americans when enrolment begins on October 1.

Obama, who is facing a Republican threat to eliminate funding for the law or shut down the federal government next week, said the fierce opposition stemmed from the fear that Americans would embrace the programme.

"Essentially they're saying people will like this thing too much and then it will be really hard to roll back," Obama said. "What we're saying is, just look for yourself. Take a look at it, and you will discover that this is a good deal for you."

The Obama administration is counting on signing up seven million Americans, including 2.7 million younger and healthier consumers who are needed to offset the costs of sicker members, in the first full year of reform through the state exchanges.

A major factor in determining the price was the level of competition among insurance companies, with rates significantly higher in states with fewer players.

The new health plans are organised in five tiers with different monthly premiums and out-of-pocket costs: catastrophic coverage, bronze, silver, gold and, in some areas, platinum.