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Healthcare premiums under Obamacare are set to rise 22% in 2017 for the silver plan. The announcement, from a government report, states that many health insurance companies are downsizing their presence in the market as healthcare costs rise for health insurers.
The requirement to offer better healthcare policies and accept individuals with preexisting conditions is the reason health insurance premiums are rising, according to insurers.
Health insurance under the silver plan is expected to cost $296 per month next year. The figure is the average based on a 27-year-old enrollee.
In 2016, premiums rose 7.2% on average for states that are included in the healthcare.gov market exchange. When considering states that are only in the federal exchange, premiums this coming year will rise 25%.
Arizona’s benchmark plan will increase 116% in 2017. The state had the lowest premiums of any state in the exchange.
Indiana residents will see their health insurance costs drop 3%.
Obamacare enrollees are offered federal subsidies that lower premiums to less than 10% of the person’s income. Estimates suggest 85% of enrollees receive federal subsidies for healthcare. Officials state that 77% of all consumers will be able to find plans that cost less than $100.
The number of insurers will drop from 298 to 228 next year, with some consumers only able to choose plans from one insurer.
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