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ACA Premiums Will Rise Sharply Without Subsidies

Experts predict that if subsidies to cover out-of-pocket costs for low-income Affordable Care Act enrollees are not funded, premiums in the ACA individual market could rise by 25 percent to 30 percent on average nationwide...
May 2, 2017

Experts predict that if subsidies to cover out-of-pocket costs for low-income Affordable Care Act (ACA) enrollees are not funded, premiums in the ACA individual market could rise by 25 percent to 30 percent on average nationwide. The impact would vary from state to state, but insurers would have to raise premiums to cover the lack of funding if the government does not provide it, says John Bertko, an actuary who works with state exchange Covered California.


The Trump administration has reportedly said it will continue to fund the subsidies. However, insurers want certainty that the funding will continue for at least two years. Timothy Jost, a consumer representative with the National Association of Insurance Commissioners, says that without the funding, “I would not be at all surprised if there would be some states where no insurers would come back at all rather than try to stay in the market and raise premiums.”

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