Federal Analysis Suggests Subsidies Will Pay For Insurers’ Premium Hikes, But Many Remain Skeptical
As concerns mount over rising Obamacare costs, the Obama Administration this week worked to alleviate the concerns of an increasingly skeptical public that Federal subsidies will help alleviate the costs of health insurers’ premium increases for 2017. The Wall Street Journal reports that the Department of Health and Human Services said in a new analysis that Obamacare subsidies for lower- and middle-income consumers would largely offset double-digit premium hikes that are expected in 2017, and that some 75 percent of those who purchase plans through Healthcare.gov will be paying monthly premiums of $75 or less. Bloomberg News reports that this analysis was released in the wake of recent insurer requests for premium increases which have been as high as 62 percent.
Despite the overly-optimistic outlook about Obamacare costs in the new HHS analysis, many remain unconvinced that Obamacare is working, including the American Hospital Association. Modern Healthcare reports that the group is warning that Obamacare “marketplaces lack stability as insurers exit and concern over drastically rising premiums continues.” AHA President and CEO Richard Pollack wrote an open letter to HHS Secretary Sylvia Mathews Burwell, urging her department “to make several policy and operational changes to ‘stabilize the insurance markets and encourage robust consumer and insurer participation.’” Pollack said participation in Obamacare marketplaces could be jeopardized by large insurers’ decisions to exit in 2017.
What This Means For Small Businesses
As their labor costs have soared in the past few years, small business owners have witnessed firsthand the financial damage that Obamacare has caused US consumers. The latest HHS report does little to alleviate the legitimate concerns of small businesses struggling to afford burdensome healthcare costs.
Additional Reading
The Houston Chronicle, the Chicago Tribune, and the Washington Examiner are among the additional outlets covering the latest HHS analysis.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
