President Obama's massive healthcare industry overhaul has the country buzzing yet again.
A new government report is causing a world of problems for Obamacare.
Accordin to CNN Money, Obamacare premiums are set to see a 22 percent price increase on their benchmark silver plan in 2017. The news reportedly comes as a result of insurers raising their costs to accommodate for an influx of sicker-than-anticipated patients.
While Republicans have taken the increase as an opportunity to slam Obamacare, here’s what you need to know about what may seem like an alarming hike.
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- - Although the report does note that the benchmark healthcare plan will cost an average of $296 per month next year, it also points out that most consumers will be shielded from the price hike, as long as they hold out open enrollment until November 1.
- Moreover, it's also emphasized that nearly 85 percent of consumers will receive subsidies on their healthcare premiums under Obamacare in 2017. As Avalere Health president Dan Mendelson highlights, the new price hikes will do more to hurt the perception of Obamacare and little to actually have any negative effect on consumers. "Relatively few people will feel the premium increases, but everyone will hear about them," Mendelson says. "That will have an effect on the perception of the program.”
- One other concern for consumers includes whether or not they'll be able to keep their preferred doctors and hospitals as providers narrow their networks to cut down on costs. Outside of how the price increases could potentially affect consumers, CNN notes that they will also require more money from the federal government to provide the larger subsidies.
- Despite continued challenges, the rate of uninsured Americans is currently at a record low of 8.6 percent.
You can find more information on the fixable Obamacare issue, here.