Obamacare Premiums to Rise Next Year by Average of 25%

Insurers are raising the 2017 premiums for a popular and significant group of health plans sold through HealthCare.gov by an average of 25 percent, more than triple the increase for this year, according to new government figures.

The spike in average rates for the 38 states that rely on the federal marketplace created under the Affordable Care Act was announced by federal health officials on Monday. The figures serve broadly to confirm what has become evident piecemeal in recent months: Prompted by a burden of unexpectedly sick ACA customers, some insurers are dropping out while many remaining companies are struggling to cover their costs.

In disclosing the 2017 rates, officials played down the impact of higher prices on consumers. They said that more than eight in 10 consumers will qualify for ACA subsidies that will cushion them from sticker shock. And they noted that as premiums go up, more Americans will be eligible for the tax credits.

...The steep increase of 25 percent is the average for the health plans on which the ACA’s tax credits are based each year - the policy in each part of the country that has the second-lowest rate among plans offering a “silver” tier of coverage. In a conference call with reporters, two Department of Health and Human Services officials did not mention that percentage.

An accompanying HHS research brief containing the overall patterns and state-level data also shows that health plan options are dwindling, although almost all ACA shoppers will have some choice of plans for 2017.

Among the states relying on HealthCare.gov, the typical number of plans available is declining by more than one-third, from 47 to 30. Competition is falling in all but four of those states, though the decrease varies significantly. In Florida, the average marketplace customer will have three more plan choices than for this year. In Arizona, the number of plans will plummet from 65 to four.

And 21 percent of the customers shopping in the federal exchange will find only one insurance company, compared with 2 percent for 2016.

Obama: It’s Millennials’ Fault That Obamacare Sucks [VIDEO] pic.twitter.com/5SNqX9ecVm

— MicroSpookyLeaks™ (@WDFx2EU7) October 24, 2016

>These kids today just aren't willing to make sacrifices to ensure the socialist revolution.

thank god@WDFx2EU7

— Polina (@TheRealPolina) October 25, 2016