Premiums for popular low-cost medical plans under the federal health care law are expected to go up an average of 11 percent next year, said a study that reinforced reports of sharp increases around the country in election season.
For consumers, the impact will depend on whether they get government subsidies for their premiums, as well as on their own willingness to switch plans to keep the increases more manageable, said the analysis released Wednesday by the nonpartisan Kaiser Family Foundation.
The full picture on 2017 premiums will emerge later this summer as the presidential election heads into the home stretch. The health law’s next sign-up season starts a week before Election Day. Democrat Hillary Clinton wants to build on President Barack Obama’s health overhaul, which has reduced the uninsured rate to a historically low 9 percent. Republican Donald Trump wants to repeal it.
The Kaiser study looked at 14 metro areas for which complete data on insurer premium requests is already available. It found that premiums for a level of insurance called the “lowest-cost silver plan” will go up in 12 of the areas, while decreasing in two. The changes range from a decrease of 14 percent in Providence, Rhode Island, to an increase of 26 percent in Portland, Oregon.
Half of the cities will see increases of 10 percent or more. Last year, only two of the cities had double-digit increases.
“Premiums are going up faster in 2017 than they have in past years,” said Cynthia Cox, lead author of the analysis.
Among the cities studied, the monthly premium for a 40-year-old nonsmoker in 2017 will range from $192 in Albuquerque, New Mexico, to $482 in Burlington, Vermont.
Final rates may change if regulators push back on the requests from insurers. The foundation plans to analyze major cities in all states as more data becomes available.
Most workers and their families are covered by employers, but about 12 million people get private coverage through HealthCare.gov and online insurance markets run by states. Nearly 7 in 10 pick silver plans, a mid-tier option that allows consumers with low to modest incomes to also get financial help with out-of-pocket costs when they receive medical care.
Income-based premium subsidies designed to keep pace with costs will cushion the impact for many. But not all consumers get help. About 2 million marketplace customers make too much to qualify for the subsidies. And an estimated 3 million to 5 million people who buy their policies outside of markets like HealthCare.gov do not receive financial assistance.
For both the subsidized and the unsubsidized, willingness to switch plans and insurers may be crucial in keeping premiums more manageable next year.
The lowest-cost silver plan in a community often changes from year to year, and Cox said the estimated 11 percent increase is based on an assumption that consumers will switch.
“If they stay in their same plan they may see a higher premium increase,” she said.
The premium increases come after major insurers reported significant losses on their health-care business. Enrollment was lower than hoped for, new customers were sicker than expected, and the government’s system to help stabilize the markets had problems.
Medicare and Medicaid administrator Andy Slavitt, whose agency also oversees the health law, said in a speech last week that the health insurance markets are still in an early trial-and-error stage. He estimated that could go on for another couple of years, or well into the next president’s term.
The Associated Press contributed to this article.
What these articles always leave out is that the IRS is dunning people who do not buy the mandatory insurance. They leave out the fact that this not insurance at all since the coverage does not kick in for most people until they have 6000 worth of deductibles paid out.. When it starts to cover it is 70% of the entire bill that is paid.. leaving the insured with 30% of the bill no matter how high it goes.. They always seem to leave out that a lot of money was stolen from paid in Medicare from working time people have. There has been a massive shift to medicaid for those who have been screwed by the government killing jobs via tax increases, maximum weekly work time under 30 hours meaning 85% of the new hires have been as part time employees and finally how the veritable cornucopia of new regulations that are punishing businesses that are trying to stay afloat.. 95 million are out of the work force.. Millions of Illegals are now being covered.. and there are just those whose cobra is going away.. YUP.. We are screwed
There should be no surprise that health care costs are going to continue to skyrocket. Obamacare failed to deal with the causes for increases; the Affordable Care Act dealt with the insurance part. The best way to lower health care costs is to look to the industry for suggestions on ways costs could be lowered.
Hey – they already removed staff, lowered doctors pay and no agent gets paid for selling it. Their is no area to cut.
Its not mathmatically possible- america had a healthcare system that was known world wide- then govt.. realized they had to take this down to control the masses-
It was never about care- your still drinking the kool aid.
Castro also offered free healthcare- talk to someone who lives there- there in no medicin and limited docs- they get other nations to send drugs for care but most die. Its called either socialism or communism- only the masters have the best care (the ones who created the plan!)
When i donate to these people they will tell you things that would make your head spin. America is run by socialists and they will next take your guns then you have no way to protect your pensions or bank accounts and it will be confiscated.
I haven’t met one person that Obama care has helped ? Tax tax and more tax the past always repeats itself !! Same old thing the workin class pays for it all !! Time for us to say enough is enough !!
Lets recap
1) democratic senators voted for this but not one democratic senator voted for this plan for senators, white house, or govt. employees!
2) democratic senators never read the bill? How can you pass something you never read? Criminal! I bet they read their pension plan.yes, this was 100% a “left” bill! They did what their master told them to do.
3) you were supposed to be able to read the details- but Pelosi lied and so did obsma- it was not available to read.
4) didnt Pelosi exempt her donors from the plan? How did that happen if it was supposed to be for all?
5) CBO office and obama said it was cheaper- more lies, it was not mathmatically possible but this was a bold faced lie- from top down. Many people showed the numbers but no one listened.
6) you can keep doctor- bigger lie!
7) you can keep your plan! Bigger lie- major companies folded lots of jjobs gone forever! Many harmed from this massive rush to push obamacare.
8) this was supposed to be voluntary!
9) this was not supposed to be a tax!
10) this was forced through with thousands of pork issues not even related to healthcare- like building parks! Never let a community organizer with redacted past sell you anything.
11) computer system was set up out of usa? How secure is that?
12) computer system cost zillions more than it should have- who got that money and why does it not work? Jeez- amazon can run a program but not govt.?
13) anyone that pointed any of this out was branded a racist when it had nothing to do with race-
14) you can’t sue gov if they refuse you care- a panel of govt people decides your care, not your doctor- read the language
15) doctors are retiring in mass – so no one will get care anyway- the program called ACA affordable care act or obanacare is a joke and was never intended to work. It was to play god on your care by the gate keeper. You were warned and no one listened- you even elected him twice!
16) hillery had hillery care when Bill was in office but it never passed it also was similar to obamacare but she added it was illegal to pay cash for care. They are the same- she us obsnas 3rd term
17) wait till you find out you dont qualify for subsidies-they can change the rules anytime, their is nowhere to go and you cant sue obsmacare.
18) too big to fail?! Ha! Just like all the other programs he created that money vanished and program never came to fruition.
Forefathers rolling around in their graves that people voted for this. senators who are elected made decisions on the masses and exclude themselves from the program.
The states decide- this is not for the feds to do.
Feds bankrupted SS, medicare and more- and you think they can do this?
Delusional.
President Johnson put the Sicial Security trust into the general fund. They say it is going broke. Solution: put social security back where it belongs. Stop spending it and there will be funds for generations to come. Why doesn’t welfare, Medicaid
Can’t wait for this election to be over so these ‘haters’ can find something else to do. President Hillary will be great.
Obamacare is doing exactly what it was designed to do…FAIL. When it collapses, HHS will swoop in and establish the single-payer system they wanted all along. It will be a response to the “healthcare crisis” manufactured by the Obama Administration. It’s waiting in the wings folks, and if Hillary gets in she will preside over the transformation. By the way, Trump was in favor of single payer before he became against it. Back then he was disappointed in Obamacare because he didn’t think it went far enough. The breathtakingly sweeping new powers Obama has secured for the executive branch under his administration will allow the confiscation of guns and food in a “crisis,” manufactured or real. The constitution is suspended under martial law and people who have stockpiled food for their families can see it taken and redistributed as FEMA sees fit.
When Pelosi said you had to pass it to see what was in it, that’s when you were screwed…..