Double-Digit Premium Hikes for Obamacare Customers Expected Next Year

Hope and change, they said...

Obamacare is unraveling, and it’s proving to be anything but affordable.

According to Fox News, the Obama administration has confirmed that health care premiums are expected to rise sharply next year, and many enrollees will be faced with only one choice of insurer. From its report:

Before taxpayer-provided subsidies, premiums for a midlevel benchmark plan will increase an average of 25 percent across the 39 states served by the federally run online market, according to a report from the Department of Health and Human Services. Some states will see much bigger jumps, others less.

Moreover, about 1 in 5 consumers will only have plans from a single insurer to pick from, after major national carriers such as UnitedHealth Group, Humana and Aetna scaled back their roles.

A new sign-up period begins on November 1st, just a week before the presidential election. This news is distressing to Democrats concerned this could affect voters’ decisions.

Yet Health and Human Services spokesman Kevin Griffis has found a silver lining, saying that though “headline rates” have risen faster than previous years, those “are not what [consumers] pay.”

At least ten million Obamacare customers are taking advantage of the subsidies offered by the federal government. According to the consulting firm Avalere Health, it’s mostly “very low-income individuals who receive significant government subsidies to reduce premiums and cost-sharing.”

Fox states, “But an estimated 5 million to 7 million people are either not eligible for the income-based assistance, or they buy individual policies outside of the health law's markets, where the subsidies are not available. The administration is urging the latter group to check out HealthCare.gov. The spike in premiums generally does not affect the employer-provided plans that cover most workers and their families.”

If the Affordable Care Act has done anything, it has dropped the rate of those uninsured to below 9 percent and over 21 million people now have insurance that didn’t before. However, it appears as though the growing pains are not over and these premium hikes are promising rough waters ahead not seen since its devastating launch in 2013 -- a far cry from liking and keeping your doctor/health plan as promised.

Watch Fox’s coverage below:

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