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Millions Could Face Higher ACA Premiums, Lower Subsidies
The Affordable Care Act (ACA), also known as Obamacare, is likely to see a significant increase in health insurance premiums for millions of Americans. A new report suggests that the majority of the 24 million people enrolled in these plans will face double-digit premium hikes along with a substantial drop in federal subsidies.
Insurers are seeking an average rate hike of around 15%, citing rising medical costs and labor expenses as well as uncertainty related to policy changes made by the Trump administration. If the enhanced tax credits expire at the end of December, this could have devastating effects on healthcare consumers.
The proposed increases may vary depending on factors such as one’s location, the type of plan chosen, and the specific insurer they use. In some cases, Maryland insurers have requested a decrease in premium hikes from 17.1% to 7.9%, which could provide some relief to policyholders. Conversely, some other states may see more dramatic increases.
The main factor driving these rate hikes is uncertainty regarding the expiration of COVID-era ACA tax credits, also known as Obamacare. The increased costs will not only increase premiums but also lead to lower subsidies for health insurance coverage. This significant change would result in consumers having to pay a larger portion of their premiums, leading many people to drop coverage altogether.
Enrollment may decline significantly due to the aforementioned rate hikes and subsidy changes. For instance, KFF estimates that ACA enrollment could fall by as much as 57%.
Source: www.cbsnews.com
