In 2017, nearly $10 billion will need to be paid for to cover double-digit premium hikes for subsidized health insurance. This is all due to President Obama’s healthcare law, “ObamaCare.”
The determination of this grandiose price spike comes from the Center for Health and Economy. Their findings predict the cost of premium subsidies under the Affordable Care Act will skyrocket by $9.8 billion next year, rising from $32.8 billion currently to $42.6 billion. On a monthly average, subsidies will increase by 26%. That’s $76 added to the current $291, meaning in 2017 it will be $$367 for a monthly subsidy.
“Under current law, you get a premium increase, you pour more money in,” said economist Douglas Holtz-Eakin, founder of the Center for Health and Economy. “The concern is that this will feed more premium increases.”
President-elect Donald Trump and Republicans are planning a multistep plan to repeal Obama’s healthcare law and replace it later on following Trump’s inauguration. As of now, the GOP alternative has no concrete or specified details to be implemented following the proposed repeal.
While the repeal may prevent these expensive changes, Republicans will have to carefully analyze how they will implement a new healthcare law to avoid unintended, costly subsidies. Holtz-Eakin predicts Trump and his Republican allies will take a different approach under their future alternative.
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