Rates Rise Again For Obamacare Health Plans, But So Do Subsidies
The cost of health insurance under the Affordable Care Act is
expected to rise an average of 22 percent in 2017, according to
information released by the Obama administration Monday afternoon.
Still,
federal subsidies will also rise, meaning that few people are likely to
have to pay the full cost after the rate increases to get insurance
coverage.
"We think they will ultimately be surprised by the
affordability of the premiums, because the tax credits track with the
increases in premiums," said Kevin Griffis, assistant secretary for
public affairs at the Department of Health and Human Services.
During a media briefing Monday, Griffis said the 2017 rates are roughly at the level
the Congressional Budget Office forecast when the law was proposed.
"The initial marketplace rates came in below costs," he said. "Many
companies set prices that turned out to be too low."
Shots - Health News
Fall Enrollment Efforts Could Be Pivotal For Federal Health Law
Enrollment opens Nov. 1. For coverage effective Jan. 1, people need to pick a plan by Dec. 15. With a few exceptions, the last day to sign up for Obamacare is January 31, 2017. Plans are available on HealthCare.gov and state-run exchanges.
While
the average premiums on the benchmark health plans are increasing, the
government says more than 70 percent of people buying insurance on the
marketplaces created by the law could get a health plan for less than
$75 a month for 2017. To get the best deal, people would have to pick a
low-cost plan with limited benefits and take advantage of all the
subsidies available.
People who already have coverage through
the exchanges can often save money by switching plans, the
administration said. More than three-quarters of people could save money
by switching to the lowest-cost plan within the level of coverage, such
as bronze or silver, that they've previously selected.
The Obamacare insurance exchanges are under strain after three major insurers pulled back
from offering coverage in markets across the U.S. The administration
says about 1 in 5 people buying insurance through the marketplaces will
have only one company offering coverage.
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Where Insurers' Exits Are Hurting Obamacare Exchanges — And Where They Aren't
It's in places like that where consumers will feel the most pain.
"Where it really matters is where a big insurance company has exited and
where that's going to leave just one company remaining," said Cynthia
Cox, associate director of health reform and private insurance at the
Kaiser Family Foundation. "For those people who live in that area, many
people may have to switch plans. And they won't have much choice if they
want to receive financial assistance and purchase through the
exchanges.