After Steep Increases in 2019, Obamacare Premiums Poised to Moderate

An analysis of health insurer rate filings with state commissioners shows that 2020 premiums for policies sold on the Affordable Care Act (ACA, or Obamacare) exchanges look to rise just 0.6 percent, according to a report by Healthcare Dive.

health-care-spending-to-rise-5.5%-annuallyMany states might actually see a decrease, with Colorado showing an expected plunge of 18 percent.

The projected overall slight increase is largely the result of overpricing in 2019.

“Plans had been so overpriced last year that insurers are now required under the ACA to issue record-large rebates to consumers. Plans were overpriced because insurers over-corrected and raised premiums too high going into 2018, amid the uncertainty of ACA repeal and the loss of cost-sharing subsidy payments,” explained Cynthia Cox, vice president at the Kaiser Family Foundation.

On Monday, the Centers for Medicare and Medicaid Services (CMS) issued a report showing that 2.5 million consumers had dropped their Obamacare policies over the past two years because they were too costly without a subsidy.

CMS Administrator Seema Verma noted that “the ongoing exodus of the unsubsidized population from the market proves that Obamacare’s sky-high premiums are unaffordable.”

NOTE: The details in this blog are provided for informational purposes only. All answers are general in nature and do not constitute legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The author specifically disclaims any and all liability arising directly or indirectly from the reliance on or use of this blog.
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