Donald Trump and the Republicans have been diligently working to set the “repeal and replace Obamacare” plan in motion, but they have yet to spell out their strategies for addressing the host of problems that will arise afterwards. The only thing people are certain about is that the healthcare insurance rates are going to sharply rise during 2017. The U.S. Department of Health & Human Services released a report containing figures indicating a 22 percent average premium hike across the country.
Insurers are bent on keeping a low profile on the exchanges, while continuing raising insurance rates, as they struggle to cope with losses from the planned demise of Obamacare. That is one of the reasons why enrollment for 2017 in the previous year was closely monitored, since insurers were giving preference to younger and healthier customers to keep their costs to a bare minimum.
While critics are saying that the price increase indicates Obamacare to be a slow-motion train wreck, the supporters, however, aver that more than 77 percent of the exchanges can benefit from tax credits which would put a $100 cap on monthly payments. In addition, the payments for soaring premium rates would only be up to levels that have been projected before the law passed.
The Highest Premium Increase
The federal HealthCare.gov insurance exchange used the available data to compare the premium increase, with Arizona topping the list with 116 percent increase, followed by Oklahoma, Tennessee, and Minnesota. Moreover, Massachusetts and Indiana are anticipated to experience a 3 percent decline in costs.
Moreover, the cost of the benchmark silver plan will likely to be increased to $296 a month annually. However, once the subsidies are included in the equation, the amount payable will be far lower than this amount. As per the estimates of the federal government, about 84 percent of people purchasing health insurance via the marketplace will be considered eligible for a tax credit.
Many states affected by the increase share some common attributes, such as low number of insurers active within the state, larger rural populations that are costly to provide coverage, and no growth on the part of Medicaid.
Another facet of the premium increase is that running Obamacare is costing the federal government a pretty penny, as it is obligated to provide larger subsidies. However, at this point in time, it is still less expensive compared to the Congressional Budget Office (CBO) initially estimated, due to the low number of enrollees and insurers have made their health insurance plan available at cheaper rates.
The decision for repealing Obamacare without any replacement plan is spelling doom on many levels. If it is rescinded without any prior planning, there can be a lot of upheaval in the health insurance industry.