Obamacare Premiums will Increase by 25 Percent Next Year
Yesterday, President Obama’s Department of Health and Human Services (HHS) confirmed what many private companies and studies already said – Obamacare is about to get even more expensive.
In a statement released by HHS, the Obama administration admitted that insurance premiums will rise by double-digit percentages in 2017. Premiums will increase by an average of 25 percent across the 38 states with Obamacare exchanges. In some states, premiums will increase by over 80 percent.
On top of this, roughly 20 percent of consumers on the exchanges will have only one insurer to choose from as health insurance companies face huge economic losses and continue to abandon the President’s healthcare law at an alarming rate. HHS estimates that the total number of insurance companies participating on the Obamacare exchanges will drop form 232 this year to 167 in 2017.
The ongoing struggles of President Obama’s signature legislation has many experts believing Obamacare is entering a death spiral where costs rapidly increase and force healthier customers to switch plans or providers, causing prices to increase even more.
According to the Daily Signal, “This is not great news for the already struggling health care legislation. Obamacare is in the midst of a death spiral: 17 co-ops have failed, the Tennessee health commissioner says the health care exchanges in the state are “very near collapse,” insurance companies in North Carolina have become a “financial sinkhole,” and few health experts have positive things to say about the future of the legislation.”
President Obama and Democratic Congressional Leaders want to fix the law by bailing out health insurance companies and adding a public option, but Obamacare is past the point of saving. Congress should allow the law to implode upon itself and pass patient-centered, free market health care reform that lowers costs, increases choice, and restores the traditional doctor-patient relationship.