Here comes the pain
Americans already reeling at how unaffordable President Obama’s Affordable Care Act turned out are in for another round of sticker shock as premiums are slated to increase at a higher rate than the government projected over the next year.
That’s according to a report from the American Action Forum, which indicates that Obamacare premiums will have risen by at least 27 percent by this time next year.
The group says its estimate is higher than the Department of Health and Human Service’s projection of 22 percent because the government is failing to account for new plans.
“Actual premium growth is likely worse than that as the 2016 benchmarks that still exist in 2017 will see a 27 percent increase,” the American Action Forum said. “Many of the 2016 benchmark plans no longer exist.”
“In the 498 rating areas considered, only 276 (55 percent) benchmark plans from 2016 are still offered in 2017,” the group added. “Enrollees in those plans will be forced to find a new plan that likely has a different benefit structure and provider network. Also, many 2016 benchmarks that survived are no longer the benchmark in their rating areas. Many consumers receiving cost sharing tax credits will also need to shop for a new plan in these cases.”
In states where insurer participation in Obamacare is at its worst levels, rate hikes could reach an outrageous 145 percent due to a lack of competition.
“In 2017, only 36 out of 498 rating areas will see an increase in competition while 366 rating areas lost at least one insurer,” the American Action Forum said. “Of the rating areas that lost insurers, 78 rating areas lost two or more and many regions in Illinois, Ohio, Texas, and Arizona, among others, saw five or more insurers exit their exchanges.”
“This mass exodus of insurers in many rating areas paints the picture of a marketplace that is increasingly hostile to private insurance,” the group said.
President elect Donald Trump has vowed to repeal and replace Obamacare as quickly as possible after he assumes the presidency in January.
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