For Americans that get their health insurance from Obamacare, monthly premiums are set to rise again next year, in some cases significantly, federal officials announced Monday. Premiums for plans sold on the federal exchange will rise an average of 25 percent, across the 38 states that use the federal health insurance marketplace. Last year, the same plans increased by an average of 7.5 percent.
When the enrollment period begins Nov. 1, customers will have fewer coverage options to choose from in many states. Higher-than-expected costs have led some large insurers to pull their coverage from the exchange. “Among the states relying on HealthCare.gov, the typical number of plans available is declining by more than one-third, from 47 to 30,” according to the Washington Post. “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.”
Administration officials stressed that federal subsidies will cushion the blow for many of the 11.4 million expected to sign up for Obamacare for 2017 and more than three-quarters of current enrollees would still be able to purchase insurance for less than $100 out-of-pocket each month. Despite the rise, Department of Health and Human Services spokesman Kevin Griffis says prices are still in line with the Congressional Budget Office’s projections when the law was first passed. “The initial marketplace rates came in below costs,” he said. “Many companies set prices that turned out to be too low.”
