Health Plan Premiums to Rise Up To 25% Next Year

Despite years of reform, the market for health insurance is expected to see significant growth next year, mostly as a result of a lack of consumer confidence. This increase comes after premium rates grew by 2% in 2015 and 7% this past year. The most significant variable that could explain this growth is the fact that many major insurance providers have been pulling themselves from the public market after facing significant losses. However, the Obama administration is confident that a majority of Americans will still be able to purchase insurance for less than $100 per month.

The Affordable Care Act has been a significant area of debate during this election season, with both candidates citing significant reforms to the policy. However, there is no clear answer to fighting these rising costs, with insurance companies refusing to deal with the short-term consequences. One answer to this question is to expand the federal subsidy program for private markets, as has been suggested by Hillary Clinton. Unfortunately, even by incentivizing competition among consumers, costs are still expected to rise and the burden will undoubtedly fall on American consumers.

http://www.nytimes.com/2016/10/25/us/some-health-plan-costs-to-increase-by-an-average-of-25-percent-us-says.html?rref=collection%2Fsectioncollection%2Fus&action=click&contentCollection=us&region=stream&module=stream_unit&version=latest&contentPlacement=4&pgtype=sectionfront