Obamacare: White House Confirms Significant Premium Hikes for 2017

We have covered the failings of Obamacare time and time again, with some of our most recent stories focusing on the double-digit premium increases expected for 2017. 

President Obama has insisted that today’s unaffordable (and rising) premiums are temporary, but this week the White House confirmed what we’ve been expecting and fearing all year long: yes, we can expect giant increases in 2017. 

“Consumers will be faced this year with not only big premium increases but also with a declining number of insurers participating, and that will lead to a tumultuous open enrollment period,” explains Larry Levitt of the Kaiser Family Foundation. 

As Humana, UnitedHealth, and Aetna scale back their roles, as many as 1 in 5 consumers will be limited to a single insurer. This can be problematic for those with chronic conditions, and “enrollees may need to change doctors or drugs when they switch insurers,” says Caroline Pearson of Avalere Health.

As reported by the Department of Helath and Human Services (HHS), we can expect premiums for midlevel benchmark plans to increase by about 25% in the 39 states currently offering Obamacare. 

But some states will suffer even larger increases. In Arizona, for example, unsubsidized premiums for a 27-year-old benchmark plan will increase by 116% – from $196 per month to $422.  

ACA enrollment beings November 1st, hardly a week before the presidential election, and voters are sure to demand a solution from both Hillary Clinton and Donald Trump. 

The Dems are quick to explain that governmet subsidies will shield many customers from “sticker shock,” but “headline rates are generally rising faster than in previous years,” says HHS spokesperson Kevin Griffs. 

More than 10 million consumers are currently enrolled in ObamaCare plans, and the majority of these individuals receive some sort of financial assistance to pay for unaffordable premiums. “Enrollment is concentrated among very low-income individuals who receive significant government subsidies to reduce premiums and cost-sharing,” says Pearson.  

Between 5 and 7 million Americans either are not eligible for financial assistance or choose to purchase individual policies outside the ACA marketplace (where subsidies are not an option). 

The Obama Administration urges the latter group to explore the plans offered through HealthCare.gov.