Following the 7.2 percent increase Obamacare premiums experienced in 2016, the Department of Health and Human Services reported on Monday that premiums are now set to go up an average of 25 percent across 39 states.
While Indiana will see a 3 percent drop, and New Hampshire will only see a 2 percent increase for “benchmarks” plans, it isn’t good news for most other states, half of which will see a premium increase of 16 percent or more.
Arizona will be taking the facing the largest jump with an increase of 116 percent. Last year someone in Arizona who paid $196 per month for the benchmark plan will now have to pay $422 per month.
The large increase in insurance premiums for Americans covered under Obamacare is due to insurance companies trying to make up for losses they took by insuring unhealthy patients.
In 2017, not only will premiums go up, but the number of insurance companies under HelathCare.gov will drop from 232 to 167, a 28 percent loss.
Approximately 1 in 5 consumers will also only have plans from one insurer to pick from, due to large insurance carriers such as UnitedHealth Group, Humana and Aetna scaled back their roles in Obamacare.
“Consumers will be faced this year with not only big premium increases but also with a declining number of insurers participating, and that will lead to a tumultuous open enrollment period,” said Larry Levitt from the nonpartisan Kaiser Family Foundation.
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