Obamacare prices might grow faster next year than ever before, according to an analysis released Wednesday.
Insurers intend to charge an average of 11 percent more for marketplace health plans sold in the “silver” mid-level category and 8 percent more when just the lowest-cost silver plans are considered, said the healthcare consulting firm Avalere.
Those are higher rate increases than in previous years, in part a reflection of a decrease next year in aid to certain insurers and a risk pool of customers who are more expensive than insurers originally estimated. The rates aren’t final, but they indicate the Affordable Care Act isn’t helping to stem the rapid growth in premiums over the last two decades.
The analysis includes proposed rates from 14 states where complete data are available. Avalere found similar results in research earlier this year examining nine states.
However, the premium increases vary widely depending on the state. Average premiums for the lowest-cost silver plans are droppoing in Washington and Rhode Island but increasing by more than 15 percent in Connecticut, Oregon and the District of Columbia.
The rate hikes are likely to prompt customers to select different plans next year, shifting to lower-cost alternatives, Avalere analysts said.
Republicans have seized on the evidence that Obamacare rates are growing rapidly, saying it helps prove that President Obama’s healthcare law isn’t reforming the system and should be replaced with their own plan released last month by House Speaker Paul Ryan.
