An insurance industry leader believes that Obamacare premiums will see “substantial” increases next year.
Blue Cross Blue Shield Association vice-president Kris Haltmeyer said that the premium increases are a result of the GOP’s tax bill last December, which repealed Obamacare’s individual mandate. He also believes the increase was driven by legislators’ failure to pass a bill that would have shored up the market.
“With the repeal of the individual mandate and the failure of Congress to enact stabilization legislation, we are expecting premiums to go up substantially,” Haltmeyer told the media.
“Those two things have the most impact on the rate increases.”
The executive estimated that average premium increases across America will be in the “low teens,” but there might be exceptions. The Hill reported that some areas could see increases in the low single digits, while others could find their premiums rise by up to 70% or 80%.
Haltmeyer also believes that the Trump administration’s decision to expand short-term plans that do not meet Obamacare requirements is also driving insurance premium increases. This move, insurers warn, could lock healthy people out of the healthcare plan while raising premiums for those who remain.
