Obamacare’s New Concern; Insurers Seek Increase in Premium for 2017

Obamacare’s New Concern; Insurers Seek Increase in Premium for 2017

It seems troubles for 'Obamacare' aren't over yet as many insurers nationwide have cited financial losses under the health care law and are saying they hope for a premium increases in 2017.

Including Texas, insurers in several states are facing problems like lower than expected enrollment, more number of customers who are sicker than expected and also problems with the financial backstop offered by the government for insurance markets.

Health insurance is locally priced and the available data from several states indicate that chances of an increase in premium appear to be coming up.

The biggest insurer in North Carolina said this week that it will seek 18.8 percent increase on an average.

An analysis by Avalere Health, a consulting firm, showed that average premium increases in nine states for the insurance plans which most people choose range from five percent in Washington State to forty four percent in Vermont.

Although, millions of customers have government subsidies to guard them but those who are not eligible for income-based subsidies are more vulnerable to these premium increases. These customers include self employed people, owners of small businesses and the early retirees. According to the law, most of the Americans need to be covered by health insurance or face substantial fine.