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Some Health Plans to Increase by an Average of 25 Percent

The Obama administration announced average increases for mid-level plans in 2017.
October 26, 2016

The Obama administration announced on Oct. 24 that premiums for mid-level health plans under the Affordable Care Act will increase by an average of 25 percent in 2017, up from 2 percent in 2015 and 7 percent this year. In addition, one in five consumers on HealthCare.gov will find only one insurer with offerings next year, said the administration.

The average monthly premium for a benchmark plan for a 27-year-old consumer would be $302 next year, up from $242 this year, according to a report from the Department of Health and Human Services. However, three-fourths of consumers would still be able to find plans for less than $100 a month with the help of federal subsidies.

In Raleigh, N.C., for instance, a 53-year-old man with an annual income of $25,000 could obtain a subsidy of $639 a month, reducing his premium to $75 a month, or $900 a year. But for a man of the same age with an annual income of $53,000, the cheapest midlevel silver plan will cost $714 a month, or $8,568 a year, according to the federal website, and no subsidy would be available.