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CNN: Subsidies Offset Obamacare Premium Hikes For Many

CNN: Subsidies Offset Obamacare Premium Hikes For Many

(AP)

By    |   Tuesday, 01 November 2016 03:41 PM EDT

Monthly premiums for Obamacare plans are going up in many states, but the majority of those customers won't see a difference in how much they pay.

According to a CNN Money analysis, 85 percent of people enrolled in healthcare plans under Obamacare receive a tax credit, which ultimately lowers the cost at the consumer level.

CNN provides an example of a 27-year-old who makes $25,000 a year that would pay roughly $142 per month for the benchmark healthcare plan offered by Obamacare because of the subsidy. A family of four with an income of $60,000 a year would pay a little more than $400 per month.

The government provides income limits for people who want to receive a subsidy. For example, a family of four can make no more than $97,200 a year to qualify for one. For two-person families, that cap is set at $64,080.

According to Centers for Disease Control and Prevention statistics cited by CNN, just 10 percent of Americans do not have health insurance — down from 18 percent in 2010.

Critics look at the premium hikes, coupled with the subsidies offered to the vast majority of Obamacare customers, and see bad news. For one, people who are paying full price for their plans could see monthly bills in 2017 that are more than $400 for one person. In Alaska, CNN notes, the full price of a plan can be $760.

Employer-provided healthcare plans are also being affected by rising healthcare costs. As The New York Times reported last week, monthly premiums aren't increasing by much but deductibles are — a sign that employers are passing costs over to their employees.

According to a study cited by Healthcare Finance News in August, deductibles have risen 50 percent in the last year.

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Monthly premiums for Obamacare plans are going up in many states, but the majority of those customers won't see a difference in how much they pay.
obamacare, subsidies, rising, costs
293
2016-41-01
Tuesday, 01 November 2016 03:41 PM
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