Obamacare premiums are spiraling out of control are set to skyrocket an astounding average of 22% for the benchmark silver plan in 2017, according to a government report released Monday.
The price hike is not surprise to conservative pundits that said this would happen years ago, it is the latest blow to Obamacare. Insurers are raising prices and downsizing their presence on the exchanges as they try to stem losses from sicker-than-anticipated customers.
The benchmark silver plan — upon which federal subsidies are based — will cost an average of $296 a month next year. That figure is based on prices for a 27-year-old enrollee in the 39 states that use the federal healthcare.gov exchange, plus the four states and Washington D.C. that have their own exchanges.
Some 85% of Obamacare enrollees receive federal subsidies, which can lower their premium but still forces lower income individuals an astounding 10% of their income toward Obamacare. The subsidies are pegged to the second-lowest cost silver plan in their area, known as the benchmark plan.
The premium increases also mean that Obamacare is growing more expensive for the federal government since it has to provide larger subsidies.
The price hikes aren’t Obamacare’s only problem for next year. Insurers are also fleeing the exchanges.
The number of carriers will drop to 228 next year in the federal exchange and selected states, down from 298 in 2016. Some 21% of consumers returning to the exchanges will only have one carrier to chose from, though that insurer will likely offer multiple plan choices.
Five states — Alaska, Alabama, Oklahoma, South Carolina and Wyoming — will only have one insurer providing plans on the federal exchange in 2017. This year, only Wyoming had a sole carrier.
Some 10.4 million people were enrolled in Obamacare plans as of June 30. Another failure of Obamacare is that it still left 8.6% of American uninsured. Not only that many insured have higher co-payments and less coverage, and no we could not keep our doctors….
The promises that President Obama made about the Obamacare–cheaper premiums! lower co-pays and deductibles! better coverage!–have all completely failed to materialize.