Health and Human Services released a new report of ObamaCare enrollment to-date and found that the average ObamaCare premium rose nine percent to $408 per month for 2016 plans.
That isn’t what the most enrollees are paying though. More than 8.5million customers either were automatically enrolled or selected a plan through Healthcare.gov and 83 percent of them received a taxpayer subsidy to afford their new premiums. The average tax credit is rose from $268 to $294, so the average premium
ObamaCare customers are paying is about $113 per month – an 8 percent increase.
Premiums on some plans in some states skyrocketed by 40 percent and those called for higher tax subsidies.
It’s no wonder the Administration still trying to get people to enroll:
“There are just 10 days left until the end of Open Enrollment for 2016 coverage and consumers should know that prices are affordable and it’s not too late to shop for the best plan,” HHS Secretary Sylvia Burwell said in a statement. “People coming to the Marketplace for coverage are active, engaged and shopping to save money.”
Thursday’s HHS report did not include information on the average deductible. High deductibles in ObamaCare plans have been highlighted by Republicans, and liberal advocacy groups are calling for action.
What’s interesting is that the lionshare of enrollments came before December 18, 2015. HHS didn’t quantify just how many those are or what the pace of enrollments have been for January. It’s quite likely that enrollments have slowed down and the late signups they are counting on, especially among young people, may not happen.
What we can expect then is a last-minute push through social media, media, and in-person targeting communities of color and young people.
ObamaCare was supposed to be affordable for regular Americans, especially those who struggled to afford coverage prior to the law being implemented. That is not the case. Without generous taxpayer subsidies, these plans would be far too expensive for most Americans who have ObamaCare plans.
And even with taxpayer help, many poor are paying more of their incomes on healthcare than before according to a report that came out late last year. According to Urban Institute, low-income Americans are paying 10-20 percent of their income on ObamaCare health benefits:
The combination of high premium contributions relative to income and high out-of-pocket costs for those with significant health care needs leads to individuals at those income levels paying 16.7 percent to 22.8 percent of income for their medical care. Thus, even with all of the ACA’s financial protections, individuals across the income distribution who are ineligible for Medicaid can still face very high expenditures.
For many Americans who thought they were getting a sale for their healthcare needs, ObamaCare has turned into a nightmare.