Obamacare Premiums Surge, Delivering post-Halloween Shock to Health Insurance Shoppers
WASHINGTON, nov.1, 2023 – Americans seeking health insurance coverage through the Affordable Care act (ACA) marketplaces are facing a stark reality: premiums are doubling for many, adding a financial fright to the post-Halloween season. The increases, impacting a significant portion of those not receiving government subsidies, threaten to price individuals and families out of the health insurance market as open enrollment begins.
The premium hikes are largely attributed to the expiration of enhanced subsidies enacted during the pandemic, coupled with rising healthcare costs and a shift in the risk pool. While over 90% of ACA enrollees are shielded from premium increases thanks to financial assistance from the Inflation Reduction Act, the roughly 5% who don’t qualify for subsidies are bearing the brunt of the changes.This disproportionately affects middle-income Americans who earn too much to receive assistance but still struggle to afford coverage.
“This is a significant blow to those who don’t qualify for subsidies,” explained Karen Pollitz, a senior fellow at the Kaiser family Foundation. “They’re seeing their premiums essentially double overnight, and that’s a really tough situation.”
the Kaiser Family Foundation analysis of preliminary data from 15 state-based marketplaces and the federal exchange shows that unsubsidized benchmark premiums are increasing by an average of 7% in 2024. However, the impact is far more dramatic for those who previously benefited from the expanded subsidies. In some states, premiums for the benchmark plan have more than doubled, forcing consumers to re-evaluate their coverage options.
Open enrollment for 2024 plans begins November 1st and runs through January 15th in most states. Consumers are urged to shop around and compare plans, as well as explore potential eligibility for cost-sharing reductions or other forms of financial assistance. The ACA marketplaces remain the primary avenue for millions of Americans to access affordable health insurance,but the rising premiums underscore the ongoing challenges of balancing affordability and access in the U.S. healthcare system.
