Sep 18, 2015

Obamacare Premiums are About to Increase

Post by Freedom Partners

Throughout the summer, state insurance regulators have released Affordable Care Act (ACA) rate hikes for next year. Unfortunately for hardworking Americans, many of the proposed increases were massive—with large insurers in several states proposing increases of 30 percent or more.

How does the White House spin enormous insurance cost increases?

The Obama administration assured the public these increases hadn’t been confirmed, meaning that they still required an audit by the state insurance department. The final rates, the president claimed, would be much lower.

The bad news?

In the last few weeks, many of those requested double-digit increases have been approved—indicating that the cost increases cited by insurers for the ACA are real and will start impacting families soon. For instance:

Alaska: 39.6 percent and 38.7 percent increases for the two insurers in the marketplace.

Tennessee: 36.3 percent increase for the state’s largest insurer; 44.7 percent for the second-largest.

Oregon: 33.3 percent and 25.6 percent increases for the two largest insurers.

Maryland: 26.0 percent and 19.8 percent increases for the two largest insurers.

Kentucky: 25.1 percent increase for the state’s largest insurer.

Iowa: 24.5 percent and 19.8 percent increases for the two largest insurers.

Nebraska: 21.89 percent and 14.8 percent increases for the two insurers in the marketplace (two new carriers will enter the market in 2016).

These states aren’t anomalies. ACA plans in many other states have proposed hefty 2016 premium increases that are still awaiting final approval from state insurance departments:

North Carolina: 34.6 percent increase requested by the state’s largest insurer.

Minnesota: 55 and 54 percent increases requested by the state’s two largest insurers.

New Hampshire: 20 to 51 percent increases requested by the two insurers in the marketplace.

Pennsylvania: 29.5 percent and 25.5 percent increases requested by the two largest insurers on the marketplace.

Illinois: 29 percent increase requested by Blue Cross Blue Shield.

Unfortunately, the picture doesn’t get any prettier. Premium growth will continue to pick up next year as costs under Obamacare outpace the law’s subsidies. In 2017, the risk corridor and reinsurance programs will expire—ending insurance company subsidies designed to keep premium increases lower.

When this happens, experts predict that premiums could spike by as much as 45 to 96 percent.

So much for President Obama’s promise that the Affordable Care Act would be “affordable” and cut “a typical family’s premium by up to $2,500 a year.”

After telling the American people countless times, “if you like your plan, you’ll be able to keep it,” the president was eventually forced to apologize after millions were kicked off their plans.

In the face of skyrocketing costs, will he apologize again? We won’t hold our breath.