Users of some popular Affordable Care Act plans may face sticker shock in the coming year, according to a study by the Kaiser Family Foundation released on Wednesday. Some Obamacare benchmark silver plans are expected to raise their prices by an average of 10% in 14 major metropolitan areas.
The analysis is based on insurers’ initial filings in 13 states and the District of Columbia. The highest anticipated price change is an 18% premium increase proposed for the second-lowest-cost silver plan in Portland, Oregon, as well as 16% increases in New York City and Washington, D.C.
Yet in Albuquerque, New Mexico, that premium is only expected to rise about 4%, while lucky residents of Providence, Rhode island, and Indianapolis actually are expected to see a drop in their premiums.
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Seven states are also expected to see a decrease in the number of insurers participating in the health care exchanges. Most notable is the exit of UnitedHealth Group Inc. (NYSE: UNH) from the individual markets in most states. However, the District of Columbia, Nevada, New York and Vermont will have the same number of insurers participating in 2017 as in 2016, while Maine, New Mexico and Virginia will see an increase in insurer participation.
Benjamin Wakana, a spokesman for the U.S. Department of Health and Human Services, which oversees Obamacare, pointed out:
This is just the beginning of the rates process, and despite headlines suggesting double digit increases, proposed rates aren’t what most consumers actually pay because the vast majority of consumers qualify for tax credits that reduce the cost of coverage below the sticker price, and people can shop around and find coverage that fits their needs and budget.
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