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Obamacare Rate Increases 2017: 5 Fast Facts You Need to Know

MIAMI, FL - DECEMBER 15: An Obamacare sign is seen on the UniVista Insurance company office on December 15, 2015 in Miami, Florida. Today, is the deadline to sign up for a plan under the Affordable Care Act for people that want to be insured on January 1, 2016. (Photo by Joe Raedle/Getty Images)

An Obamacare sign is seen in Miami, Florida. (Getty)

Get set for Affordable Care Act (Obamacare) premium increases – although the amount depends on where you live, and the government says tax credits offset them for most people.

A government report released October 24, 2016 found that Obamacare premiums “are set to skyrocket an average of 22% for the benchmark silver plan in 2017,” according to CNN Money.

Why? CNN says customers were sicker than insurers anticipated so the insurers “are raising prices and downsizing their presence on the exchanges as they try to stem losses.”

However, the increases do not include “the advance premium tax credits, or subsidies, that reduce the cost for many people,” said The Fiscal Times. The government says most people will pay less than $75-100 a month after tax credits. However, some people make too much money for the tax credits but do not feel they make enough to afford the premium hikes, said The Hill.

Republican nominee Donald Trump has been highlighting the issue on the presidential campaign trail, as some battleground states like Pennsylvania and Arizona are facing large premium hikes.

Trump wants to get rid of Obamacare, while Clinton wants to expand and retain it, said NPR.

Here’s what you need to know:


1. Some Consumers Will Have Fewer Choices & See Premium Increases, Reports Say

obamacare

Todd Ulmen, poses on October 19, 2016 in Miami, Florida. Some Americans are overjoyed with Obamacare. Others say it is a nightmare. Todd Ulmen, 50, runs a retail clothing business in Miami. He provides health insurance for his two full-time workers, but must make sure his part-timers work fewer than 25 hours per week, or he would have to pay for their coverage as well. (Getty)

Forbes Magazine reports that “marketplace premiums will increase and consumers will have fewer choices.”

According to Forbes, “The midlevel benchmark plan will increase its premium by an average of 25%. Approximately 20% of people will only have only one insurance plan available.”

“Many major national insurance carriers have scaled back their participation in ObamaCare,” Fox News reported, so “many American families will only be able to choose plans from a single insurer.”


2. Costs Have Increased Because Insurance Companies Must Accept Already Sick Participants

This is called adverse selection. That means more higher-risk people purchase insurance, said Forbes. Insurance companies can normally reject those people, but not under Obamacare. This is leading to price spikes.

There is a penalty for healthy people who do not sign up for Obamacare, but Forbes says it’s less than health insurance policies offered on the exchange so some healthy people don’t sign up.

CBS New York added that, in addition to rate hikes, “the penalty for individuals and families who did not have health insurance in 2016 will also nearly double as compared to fees for 2015 tax returns when revisions to the Affordable Care Act go into effect.”


3. The Premium Increases Will Depend on Where You Live, Reports Say

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Department of Health and Human Services October 2016 chart.

According to The Fiscal Times, premiums “in 31 states are expected to rise by double digits, while two states will see decreases in 2017 from this year.”

The Fiscal Times says that premiums in Arizona “are estimated to more than double.” The enrollment period started November 1.

Fox News said “premiums for a midlevel benchmark plan will increase an average of 25 percent across 39 states…some states could face even steeper increases.”

This government research brief provides premium increase estimates by locale.

States that did not fully embrace Obamacare are generally seeing bigger increases.


4. People Are Expressing Shock Over the Increases

One man in Georgia, Jay Wells, told Fox News he received a letter saying: “Your current monthly premium is $711.83. Starting in January, your monthly premium will be $1,872.17.”

“My goodness — $1,800 – that’s a deal breaker,” he said to Fox News, adding that he was now voting for Donald Trump.

He is not the only one.

Other consumers have told the news media they like Obamacare (see below for one example).

obamacare

Johann A. Ali, a self-employed environmental consultant who along with his son is having a good experience with Obamacare, poses on October 19, 2016 in Miami, Florida. Johann Ali, 40, actually giggles when he talks about his health insurance. “I love it,” says the self-employed environmental consultant. First, he raves about his son, Kyle, who is 19, works part-time, and has been able to find a good insurance plan for $99 per month. His annual earnings of about $16,000 allowed him to get a federal discount, slashing the cost from the list price of $199 per month. (Getty)

Others say that Republicans have stymied Obamacare.


5. The Architect of Obamacare Says the Increases Are Misleading

According to CBS Boston, Professor Jon Gruber, an economist at the Massachusetts Institute of Technology, is “known as the chief architect of Obamacare and its predecessor, Romneycare.”

He argued to the television station that the rate increase headlines are misleading because most Americans are ensured through employers and those who buy insurance through the exchange mostly get health insurance subsidies to offset the premium increases.

“So it’s really only a very small share of the public that’s affected by these premium increases, which I don’t think you’d realize if you read the headlines,” he told CBS Local.

The government insists, “More than 7 in 10 (72 percent) current Marketplace enrollees can find a plan for $75 or less in premiums per month, after applicable tax credits in 2017. Nearly 8 in 10 (77 percent) current Marketplace enrollees can find a plan for $100 or less in premiums per month, after applicable tax credits in 2017.”

However, some people make too much money to qualify for the tax credits but can not afford the premium increases. The Hill said Minnesota is one state thinking of putting millions of dollars into a fund to assist those people.

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8 comments

  1. Obama care has proved that a disastrous for Americans in general. Hillary also want double up on the top of that . we have one last chance on hands to get rid of this, vote for the one can repeals and replace it.

  2. You can Thank Marco Rubio with his Poison Pill Bill added to the Omnibus BUDGET Bill (Omnibus Budget Bills are loaded w/sh*t bombs 4 taxpayers): http://www.bloomberg.com/politics/articles/2015-11-25/marco-rubio-didn-t-kill-obamacare-but-here-s-how-he-undermined-it
    What to expect next? Social Security; by approx. 2022 the S.S. ‘Trust Fund’ will be at it’s peak (as intended 1983) $3 Trillion, Wall Street is drooling over these funds and their GOP sock puppets will hand it over by hook or crook.

  3. Obamacare this is an illegal act !

    This illegal act forced on the American citizens by the Obama Administration and other government entities !
    Forcing the American people into buying health insurance !

    Not out of concern for our health but the fat in the pocket of the insurance companies !

    This illegal act by our government forces you into a contract by using, extortion ! threats ! intimidation !

    The Obama Administration is well aware, that all medical contracts contain an arbitration clause.

    Arbitration strips you of your constitutional rights under the United States Constitution and under the constitution in the state you live in.

    Arbitration cannot adjudicate criminal law only civil.

    Arbitration allows criminal activity to go unpunished.

    The trans-pacific partnership also known as TPP contains a devastating arbitration agreement !!

    This arbitration agreement allows criminals to violate the signers rights.

    America would be the signer in the trans-pacific partnership making subject the American people to criminal activity.

    That is why this trade deal is so opposed by our government.

    Butt ! the Obama Administration, is claiming they have legal authority to force you into an arbitration agreement with a medical facility.

    Arbitration is run by lawyers retired judges !

    Within one arbitration hearing the arbitrator / the judge can make as much as $70,000 in arbitration fees in 3 weeks !

    Now this is great if you’re a lawyer or a retired judge!
    Because the Obama Administration just supplied you with millions and millions of customers for arbitration hearings!

    The American people are not only forced into this agreement but are stripped of their legal rights under the Constitution of the United States and the constitution in the state you live in !

    The arbitrator can throw out all damaging evidence if it so chooses, the signer of an arbitration agreement is stripped of all rights, to take the Violator into civil court !

    The Obama Administration has put all Americans at the mercy of the arbitration Tribuna,l and if you don’t have any money you cannot take any action against the offender.

    That is why Obama Care is illegal !

    You cannot force someone in to a arbitration contract knowing it strips you of your legal constitutional rights.

    But ! President Obama and his administration have done just that.

    • Obamacare has nothing to do with your medical costs !

      The main engine behind Obamacare is to strip you of your constitutional rights !!

      In order to have a one world government !

      You must either get rid of the Constitution or bind the power of it . and ;
      That is exactly arbitration does !

      It binds the Constitution and strips you of your rights ! and ;

      It strips you of the protection of the laws of the United States and the state you live in.

      That’s why Hillary Clinton said she will raise taxes on the rich !!

      butt lawyers and judges fall just under the cap of 250,000 a year !

      Now the Clinton plan will reassess their cap limit and lower it.

      To hit the middle class protecting once again the elite.

      • If you have an arbitration case and there is criminal activity ,they cannot force you to arbitration within the contract that you sign.
        it states: ( all and any dispute) arbitration does not have the power to adjudicate criminal law .

        Therefore the contract is fraudulent!

        The American Arbitration Association, jams or any other arbitration company hearing a case that has criminal activity. and ;

        Proceeds with the arbitration hearing.

        That Arbitration Association/company has committed fraud !

        Because they know they cannot hear any dispute ; and

        Therefore you can request in a lawsuit to have a contract with criminal activity voided and resended !

        On the fact and the bases of fraud ! carry out by the Arbitration Association/ company

        Because if they have no Authority to hear your case why did they take it in the first place !

        Simply !!

        It’s to strip you of your constitutional rights and the laws of the United States and the state you live in.

        They are hoping you will be ignorant of the law

    • I’m sorry but you clearly know nothing about this. I work for an insurance company and the only people obamacare is bad for are the insurance companies! because they can no longer deny insurance to people with pre-existing conditions that would be too expensive to insure. Yes premiums are increasing but they’ve done that every year since WWII while the average annual rate of those increases since obamacare was passed is 4.1%, half what they were between 2004-2010 (8%). When you hear about these huge % increases like 22% nationally or 112% in Arizona this is before government subsidies which 87% of americans buying off the obamacare marketplace are getting. This means premiums increase for only 3% of americans when you include those getting insurance from their employer and the only reason that the 3% are getting increases are because they are CHOOSING to pay more in order to get more coverage.

      The only reason obamacare reaceives so much criticism is because republicans don’t like the principal that you are required by law to pay for something, even though the people that are being forced to pay are the ones responsible for the premium increases we see year to year. That and the fact that republicans don’t like any policies created by democrats.

      Obamacare was ruled by the Supreme Court to be constituional in 2010 so if you want to take your anger out on someone, do it on the republican judicial branch.

  4. I think Obamacare sucks. But, that’s only because the system is stupid. Our healthcare costs are the highest in the world because the Healthcare Insurance Industry is an oligopoly. (Look up the meaning of that word, if you are not familiar with what happens when an industry is monopolized or “oligopolized”, educate yourself!) Healthcare Insurance companies are completely unnecessary – all they do is get in between consumers and providers and drive up the cost of healthcare. Right now, there’s a lot of bullshit going on about premium increases caused by Obamacare. The cause of premium increases is solely due to greed on the part of Healthcare Insurance companies. Spend some time (like I have) reviewing the income statements of the 10 largest healthcare insurance companies in the U.S., especially over the past six years. Even after the implementation of the Affordable Care Act, their revenues and profits continue to go up and up and up, as does the compensation paid to their executives. How are we this stupid? Well, it’s not just stupidity. A lot of it is due to the fact that Healthcare Insurance Industry lobbying organizations fund politicians. Donald Trump says that he would “repeal and replace” Obamacare. “With something TERRIFIC!”. He does not say one word about what he would replace Obamacare with. And, I suspect that’s because he either a) has no clue what to replace it with, or b) has no intention of replacing it with anything. (And, many Americans believe his bullshit. Unbelievable.) If we want to bring Healthcare costs under control, the only logical answer is to expand Medicare to cover every citizen. (For those who want coverage for costs Medicare doesn’t cover, they can buy healthcare insurance from HealthCare Insurance companies.) But, expanding Medicare to all requires expert dedicated knowledgeable management. The system has to be run like a business, not like a government agency.

  5. Healthcare – I think Obamacare sucks. But, that’s only because the system is stupid. Our healthcare costs are the highest in the world because the Healthcare Insurance Industry is an oligopoly. (Look up the meaning of that word, if you are not familiar with what happens when an industry is monopolized or “oligopolized”, educate yourself!) Healthcare Insurance companies are completely unnecessary – all they do is get in between consumers and providers and drive up the cost of healthcare. Right now, there’s a lot of BS going on about premium increases caused by Obamacare. The cause of premium increases is solely due to greed on the part of Healthcare Insurance companies. Spend some time (like I have) reviewing the income statements of the 10 largest healthcare insurance companies in the U.S., especially over the past six years. Even after the implementation of the Affordable Care Act, their revenues and profits continue to go up and up and up, as does the compensation paid to their executives. How are we this stupid? Well, it’s not just stupidity. A lot of it is due to the fact that Healthcare Insurance Industry lobbying organizations fund politicians. Donald Trump says that he would “repeal and replace” Obamacare. “With something TERRIFIC!”. He does not say one word about what he would replace Obamacare with. And, I suspect that’s because he either a) has no clue what to replace it with, or b) has no intention of replacing it with anything. (And, many Americans believe his BS. Unbelievable.) If we want to bring Healthcare costs under control, the only logical answer is to expand Medicare to cover every citizen. (For those who want coverage for costs Medicare doesn’t cover, they can buy healthcare insurance from HealthCare Insurance companies.) But, expanding Medicare to all requires expert dedicated knowledgeable management. The system has to be run like a business, not like a government agency.