The Obama administration announced Monday that Obamacare premiums will increase by at least 25 percent in 2017.
According to the Department of Health and Human Services, price hikes – which will vary state to state – are accompanying decreased participation by major insurance providers.
“Before taxpayer-provided subsidies, premiums for a midlevel benchmark plan will increase an average of 25 percent across the 39 states served by the federally run online market…” reports the Associated Press.
Roughly 1 in 5 consumers will only be offered plans from a single insurance company given reduced participation by those such as Humana, UnitedHealth Group and Aetna.
While the administration asserts that subsidies will help lighten the load, as many as 7 million people are “either not eligible for the income-based assistance, or they buy individual policies outside of the health law’s markets, where the subsidies are not available.”
The Associated Press also notes that in some states the increase will be “striking,” jumping by as much as 116 percent.
“In Arizona, unsubsidized premiums for a hypothetical 27-year-old buying a benchmark ‘second-lowest cost silver plan’ will jump by 116 percent, from $196 to $422, according to the administration report.”
The number of participating insurance providers is also set to drop by at least 28 percent.
“The total number of HealthCare.gov insurers will drop from 232 this year to 167 in 2017, a loss of 28 percent. (Insurers are counted multiple times if they offer coverage in more than one state. So Aetna, for example, would count once in each state that it participated in.)”
This latest issue joins countless others surrounding the controversial healthcare bill and will undoubtedly become a hot button issue as the presidential election nears.
Watch a collection of broken healthcare promises below: