How Much Will Obamacare Premiums Increase in 2018?
Health care has been politicized in the United States. While for better or for worse could be used here, for worse seems to be the only honest way to put it. Uncertainty over the future of the Affordable Care Act (ACA) has insurance companies raising prices like never before.
With the government working day and night to overthrow Obamacare without having a better solution in place, many are worried about the future of their medical coverage. On the other hand, many insurance companies are nervous about profit margins, increasing regulations, and reduced federal funding.
Obamacare Projected Premium Increases in 2018
When you combine all these factors, you get one thing – higher prices. Obamacare premiums will be increased in 2018, just like they did in 2017. The rate at which premiums are increased far surpasses inflation.
So, what are the exact figures? How much can you expect your Obamacare premiums to increase in 2018? Well, the exact figures still haven’t been announced, as insurance companies have recently proposed their numbers. However, the preliminary numbers show that premiums will increase between 18-22% in 2018. A large figure that’s up from a 12% increase in 2017.
While some have speculated that Obamacare premiums could jump up to 53%, the increases above should be more accurate. Only one thing is certain at this point – if Obamacare is still around in 2018, it’s going to be more costly than in 2017.
The Issues Obamacare Faces Moving Forward
Now, there are many issues facing Obamacare in the coming years. With the ACA being politicized, there’s always going to be a portion of Americans that love and despise it – no matter how good or bad it is. Here are a few other issues Obamacare faces in the future.
The Republicans in the House and Senate are rapidly pushing a bill forth that would eliminate Obamacare once and for all. While nothing official has passed yet, there’s a lot of speculation about upcoming changes.
The future of Obamacare is uncertain. This means insurance companies have been raising prices to adjust for uncertainty and wasted resources. As well, many insurers have been pulling out of the ACA. In over 40% of counties in the United States, there is only one insurer participating in the Affordable Care Act marketplace.
● Few Options
One of the biggest problems facing Obamacare, if it were to stay, around is the number of participants. With heaps of government regulations and stiff price competition, many insurance companies have withdrawn their offerings from the exchange.
If Obamacare isn’t profitable enough for insurance companies, then they have no incentive to participate. Many speculate that the ACA could implode if enough insurance companies withdraw from consideration.
● Political Opposition
Just like Obamacare, the new bills being passed by Republicans in the highest throes of government have been praised by the RNC and scolded by the DNC. With big government regulations around every corner with regards to healthcare and medical reform, the constant argument doesn’t benefit anyone – especially consumers.
Obamacare has received staunch opposition over the years. Some of it has been warranted, while other aspects of the hatred have stemmed from political views more than legitimate reasoning. If politicians can cross party lines to put together a health care plan, the country could be better off.
Obamacare premiums are increasing because many predict the system is bound to fail sooner or later. While the United States is in desperate need of health care reform, most are skeptical that the ACA is the answer at this point.
With consumers looking for other options like health cost sharing or insurance from their employer, the days of the ACA may be numbered. Insurance companies know this, and have decided to raise prices until Obamacare is no longer in existence.
The Bigger Issue
Some have speculated that Obamacare will stay around in some form, but that the federal government will eliminate cost-sharing programs and subsidies. In doing so, many of the plans on the exchange would immediately be unaffordable for a number of Americans.
The current political administration has been vague about what they will do with the subsidies. With budget cuts abound throughout government programs, it’s unlikely the subsidies will remain in their current form. This would be another huge blow to Obamacare and the number of participants.
Where Big Business Meets Big Government
Overall, when the big business of health insurance collides with huge government regulations and programs, most Americans lose. Obamacare premiums are rising, and they’ll continue to increase year after year. An 18-22% increase is anticipated for 2018. That’s a small amount compared to the 53% some insurance companies proposed this spring.
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