Obamacare Is About To Get WAY More Expensive For Millions Of Americans
Premiums for the most widely used Obamacare plans, known as Silver? plans on the state exchanges, will rise an average of 34 percent in 2018, according to research published Tuesday evening from Avalere Health.
Silver plan premiums will be up, on average, roughly 38 percent from 2017, an increase that could prove incredibly difficult for many families to meet. Bronze, Silver and Platinum plans are all expected to see premiums rise at least 16 percent, or more, in 2018.
Health premiums are soaring, according to insurance providers, because the Trump administration decided to stop paying out crucial subsidies, known as cost-sharing reductions (CSRs), that help reimburse insurers for the cost of covering low-income individuals on the Obamacare state exchanges. Insurance providers are slated to pay out $7 billion in subsidies this year and roughly $10 billion in 2018.
Even though the Trump administration decided to stop paying these subsidies, which it labeled as bailouts, insurance companies still have to provide CSRs to consumers. Roughly half of the consumers who purchase health insurance through Obamacare qualify for CSRs. Obamacare consumers saw their out-of-pocket costs lower by over $1,000 through these subsidies.
Republicans also tried nearly a handful of times to repeal and replace Obamacare in 2017, which added another layer of uncertainty for 2018 and beyond.
?Plans are raising premiums in 2018 to account for market uncertainty and the federal government?s failure to pay for cost-sharing reductions,? Caroline Pearson, senior vice president at Avalere, said in a statement. These premium increases may allow insurers to remain in the market and enrollees in all regions to have access to coverage.?
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