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Wednesday, August 17, 2016

Obamacare Sticker Shock: Average 2017 Premium Surges 24%

The reference, of course, was to the state by state surge in proposed 2017 Obamacare premiums, contrasted with what the government contends is a modest 1.0% inflation rate.

Now, courtesy of a new study by independent analyst Charles Gaba - who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states - we can also calculate what the average Obamacare premium increase across the entire US will be: using proposed and approved rate increase requests, the average Obamacare premium is expected to surge by a whopping 24% this year.

As Politico notes, Cigna and Humana recently revised their rate requests in Tennessee, and the new filings are dramatically higher. Cigna is now asking for a 46% average increase, up from 23%, and Humana is requesting a 44% increase, up from 29%, The Tennessean reported on Friday. Expect these numbers to rise even more as insurance companies exit even more states.

So far, the average approved rate increase is roughly 17% according to weighted averages across just five states, Mississippi, New York, Oregon, Rhode Island and Vermont, Gaba reports. "Combined, all [five states] only make up around 6.3 percent of the total population," Gaba writes. "The numbers will no doubt jump around quite a bit as additional, larger states are plugged into the mix."

Here is what Charles Gaba calculated:

[I] noted that since I originally crunched the numbers for some states as far back as April, the situation in some states has likely changed somewhat due to carriers dropping out, joining in or re-submitting their rate request filings.

There have been significant changes to the requested rate filings in at least four states: Arizona, Connecticut, Maryland and Tennessee. In all four cases, I'm afraid the statewide weighted average has increased, either due to resubmitted filings, a carrier dropping out or both.

As a result of these updates, the national average increase requested now stands at 23.9%, up from the previous average of 23.3%.



Anonymous said...

And only the most uniformed Obama/Hillary voters didn't see this coming.

You people that vote Democrat are just plain stupid.

Anonymous said...

This all comes down to the healthy subsidizing the not so healthy.

Anonymous said...

This all comes down to the greed of the health insurance companies.

Anonymous said...

I think I'm going to get paid under the table get my medical assistance for free to have something called Obama care is a joke try to get my tax money I pay my bills not your trips