Tuesday, April 03, 2018 08:10 PM

PREMIUMS SHOOT UP, BUT MANY ARE PAYING LESS FOR 'OBAMACARE'

WASHINGTON (AP) Consumers getting financial assistance under former President Barack Obamas health care law will pay lower premiums this year, even though the list price for their health insurance shot up.

That odd result is reflected in a report issued Tuesday by the Trump administration.

After federal aid, the average monthly premium paid by subsidized customers on HealthCare.gov is dropping to $89 from last years $106. Thats a 16 percent savings even though the list price premium went up about 30 percent, now averaging $639 for those subsidized customers.

The bottom line is counterintuitive, but it shows how Obamacare subsidies cushion consumers from rising premiums.

Seema Verma, head of the Centers for Medicare and Medicaid Services, says more affordable health care options are needed for people who arent eligible for the Affordable Care Acts income-based financial assistance.

But independent analysts say a big part of this years premium increases is due to actions by the Trump administration, including the cancellation of major payments to insurers.

Insurers jacked up premiums to make up for the loss of federal dollars to cover discounted copays and deductibles that the companies were required to provide to low-income customers. Congressional authorization of the ...

News source: WDEF

See also: Trauger