2016 Obamacare Coverage To Cost Average Of 7.5% More
The Obama administration has announced the ACA premiums for 2016. According to federal government data, Politico reported, consumers “are facing an average 7.5% price increase” for the second-cheapest “silver plan,” which is “a key benchmark,” but “the average rate hikes will vary dramatically from state to state — skyrocketing more than 30 percent in Alaska, Montana and Oklahoma while dropping 12.6 percent in Indiana.” The Washington Times says that although the increases are “notably higher than a 2-percent spike heading into the 2015 signup season, the administration can tout some progress compared to double-digit increases recorded in the years before Congress passed the Affordable Care Act of 2010.” The Washington Post notes that federal officials “contend that the health plans sold through the exchanges will be affordable to people willing to shop for the best rates,” adding that “HHS officials emphasize” that “the cost to consumers…is cushioned by the fact that nearly nine in 10 are eligible for tax credits.” USA Today notes that the report from CMS “did not address the important issue of total out-of-pocket costs, which include deductibles, co-payments and other cost sharing.”
What Happens Next
The AP reported that when the new enrollment period opens on Nov. 1, rates will be higher “in many parts of the country.” However, “people have options if they shop around, and an upgraded government website will help them compare costs and benefits.” The AP reviewed changes to the HealthCare.gov website and offers tips for consumers.
What This Means For Small Businesses
Small businesses are no stranger to burdens under Obamacare. Unfortunately, the costs of health care are only increasing as this overreaching government mandate continues, and small business owners should prepare to see their capital expenditures continue to rise.
Additional Reading
Health Affairs also covered the premium cost increases.
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.
