Prices for Obamacare are poised to rise more in 2017 than they rose this year, according to a new study released Tuesday, but the extent of the increases are likely to vary by widely region and type of plan.
An analysis by the firm Avalere of early rate filings in nine states found that insurers are proposing increases as high as 44 percent for some plans in Vermont, while actually proposing rates representing a 29 percent decrease in New York.
On average, Avalere found that insurers proposed increases of 16 percent to Obamacare’s mid-level silver plans. Silver plans are the most popular plans purchased on Obamacare marketplaces, with 68 percent of enrollees last year selecting such plans.
While premiums grew significantly in 2016, they may increase more next year due to lower-than-expected enrollment, higher healthcare costs and the termination of two programs that helped to mitigate losses to insurers, known as reinsurance and risk corridors, Avalere found.
Avalere also found that insurers are seeking lower prices increases, on average, among the cheapest silver plans. The lowest-cost silver plan would increase by 6 percent and the second lowest-cost silver plan would increase by 8 percent, on average.
“As in years past, proposed premium increases vary dramatically by state and by region within states,” said Elizabeth Carpenter, senior vice president at Avalere. “In most states, premiums for the lowest cost plans appear to be rising less than for the silver metal level as a whole.”
Still, the proposed rates are not final, and insurers could choose to forgo or diminish rate increases later this year.
