Obamacare premiums are expected to skyrocket an average of 22% in 2017 according to a government report released on Monday.
According to CNN, the price hike is the latest blow to the Affordable Care Act. Insurers are rising prices and downsizing their presence on the exchange as they try to offset losses from sicker-than-anticipated customers. Enrollment for 2017 will be closely watched since insurers want to see younger and healthier consumers enroll.The average premium increase will vary among the states. In Arizona, the silver plan premium will increase 116% in 2017. In Indiana the silver plan will be 3% cheaper.
Most consumers, however are shielded from the price hikes because almost 85% of Affordable Care Act enrollees receive federal subsidies, which can lower their premium to less than 10% of their income.
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Some 77% of consumers will be able to find a plan that costs $100 of less after subsidies, officials said.
The premium increases also mean that the Affordable Care Act is growing more expensive for the federal government since it has to provide larger subsidies. The program is also still costing more than the Congressional Budget Office originally estimated since fewer people have enrolled.
