Thursday, October 27, 2016

Hold On To Your Hat! ObamaCare Subsidies To Explode As Cheapest Bronze-Plan Costs Surge 28%

Window shopping for 2017 ObamaCare plans has just opened on, and an IBD analysis of next year's deductibles and premiums — both before subsidies and after — reveals some surprising findings.
Overall, the cheapest bronze-plan premium will spike by an average 28.2% before subsidies, based on a review of prices in the biggest market in each of the 38 states utilizing the federal government website. That follows a 12.7% rise in 2016. For a 30-year old, a bronze premium will rise to $272 per month from $212 this year,
Six markets will see increases of more than 50%, including Nashville, Tenn. (54%); Columbia, S.C. (54%); Charlotte, N.C. (55%); Chicago (65%); Oklahoma City (80%) and Phoenix (177%).
The huge premium hikes will be a shock for middle-class households that earn too much to qualify for ObamaCare subsidies restricted to those earning up to 400% of the poverty level ($47,520 for a single person). But for those who get subsidies, the premium hikes look like much ado about exactly nothing.
IBD's analysis looked at how subsidies would change for individuals earning 257% of the poverty level, or $30,539. Here is the shock: Subsidies are set to explode by 99%, to an average $121 per month vs. $61 this year. Once the bigger subsidies are factored in, the average cost of a bronze plan will be $152 per month — exactly the same as in 2016.
Read the rest of the story HERE.

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