Premiums will increase across all tier levels for the 2017 plan year. The marketplace offers four tiers: bronze, silver, gold and platinum. On average, bronze plans will increase by about 21 percent. In numbers, that’s about $311 for a single 30-year-old nonsmoker compared to $258 in 2016. The average deductible will increase to just under $6,100 next year as well.
For silver plans, the premium rate will jump 17 percent. Silver plans are the most popular choice on the marketplace. They’re also used as benchmark plans to calculate subsidies. In 2017, a 30-year-old nonsmoker will pay about $365 a month for a silver plan. In 2016, that same person would have paid $312 a month. Deductibles will increase to about $3,572 – up from $3,117 last year.
Gold plans will see a 22 percent increase in premiums, from about $381 a month in 2016 to $464 a month in 2017 for a 30-year-old nonsmoker. The average individual deductible will be about $1,200, which is only up by 3 percent over last year.
At the platinum tier, a 30-year-old nonsmoker will pay about $553 a month for coverage in 2017, up 15 percent over 2016. Platinum plans will see the greatest increase in deductible amount, but platinum plans have historically low deductibles to begin with. In 2017, the individual deductible jumps 74 percent to $405 compared to $233 in 2016.
Across the country, premium rates will increase by 25 percent in 2017 owing in some part to the withdrawal of several major insurers from the Obamacare marketplaces. Earlier this year, United Healthcare, Humana and Aetna announced that they would be severely limiting participation in the public exchange sites. As three of the largest insurance companies in the U.S., their participation – or lack thereof – makes a difference in choice and competition, which affect price. Smaller companies have also exited the exchange sites in certain states, such as Health Choice of Arizona. Regardless of carrier size, having fewer options on the exchanges impacts peoples’ ability to buy affordable coverage. But it’s not just insurer participation that has led to skyrocketing premium increases for 2017. The problem centers on the inability of insurers to accurately set premium rates over the past three years. This is also why some of the largest insurers have opted out to begin with. Simply put, they’re losing money.
Bloomberg estimates that about 1.4 million people will lose their current health insurance plans for 2017 due to the withdrawal of major health carriers from the exchanges. ACASignUps.net, a site that tracks numbers for the ACA, estimates that closer to 2 million people will lose their current coverage. Of those nearly 2 million people, about 1.6 million will lose their health insurance from the big three insurers (Aetna, Humana and United Healthcare) alone. The remaining insurance carriers account for the difference.
In North Carolina, 284,000 people will have to shop for new coverage now that Aetna and United have withdrawn from the marketplace. Blue Cross Blue Shield of Tennessee is scaling back its participation in the private market for Tennessee, leaving 117,000 people without coverage for 2017. Approximately 103,000 Minnesota enrollees will lose their coverage thanks to Blue Cross Blue Shield of Minnesota’s withdrawal of PPO plans on and off the marketplace. And in Alaska, 14,000 people will lose plans via Moda while 26,000 people in New Jersey will lose coverage through Lifewise. A Kaiser Family Foundation analysis for the Washington Times found that nearly one third of the country will only be able to choose plans from one health carrier in 2017.
Premium rates will increase by about 25 percent on average, but some states will see even more staggering price hikes. A report published by the Department of Health and Human Services in October 2016 revealed that Arizona residents may face a rate hike of 116 percent next year. After Arizona, the highest rate increases are in Oklahoma (69 percent), Tennessee (63 percent), Minnesota (59 percent) and Alabama (58 percent). Percentages are based on a 27-year-old individual who buys the second-lowest silver plan and receives no tax credits.