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Big Price Jumps Coming to Obamacare Premiums

If you thought Obamacare premiums were high now, just wait until next year. Premiums are looking to hit the double digits. That’s because insurers located in multiple states recently sent a request to the government asking for large rate hikes in the year 2019.

Some of these requests from insurers include:

  • New York – 24%
  • Washington – 19%
  • Maryland – 18.5%

These increase requests boil down to two major factors. First is to counteract Congress lifting the penalty for the individual mandate. This mandate was the controversial law that required Americans to either have health insurance or pay a fine.


Reports cited by the Congressional Budget Office estimate that the lifting of this individual mandate penalty will cause premiums to rise approximately 10%. This is to offset the fact that most young people (or people who don’t have a lot of money) will chance it and waive their right to insurance.

Another concern of insurers that stems off from the mandate lift is that their only customers are going to be the elderly and sick. They are asking for an increase in rates to offset an impending overload of claims coming their way the next calendar year.

The second major force behind these requests comes from the uncertainty these insurers feel. Insurers are looking ahead at President Donald Trump’s agenda. His administration is anticipating an expansion of two different health plans. Neither one of these plans will have to adhere to the restrictions set forth by the Affordable Care Act.

As per Trump’s plan, these two alternatives break down as follows:

While both of these plans are expected to come with lower premiums, they are also expected to have a smaller range of coverage.

Whereas some states have already sounded off on the situation, the remaining states are expected to file their proposed rates within the next few weeks. From there, regulators will look over each states’ request and can make any change they deem necessary. By September, the final premium numbers will be confirmed and announced in time for an open enrollment that kick offs on November 1.

Although insurers have been crying foul in some states, others are only asking for small increases. Both Pennsylvania and Vermont insurers are looking for a 4.9% jump. According to the Pennsylvania Insurance Commissioner, Jessica Altman, the small bumps are much in thanks to Pennsylvania’s commitment to keeping people enrolled after the state’s support was cut by the Trump administration.

If you are already enrolled in Obamacare, you might not see a hike next year. One of the clauses in Obamacare states that insurers receive federal subsides. This is done to limit their rates to less than 10% of the insured’s income.