TNR: King Victory means an Average ObamaCare Premium Increase of 322 Percent
“The average increase in monthly premiums, across all states, would be from $82 to $346. That’s a 322 percent hike. And, remember, projections show that most people now getting subsidies will not be able to pay the higher prices.”
Again, because of the way insurers price premium increases, the new price will exceed the amount of money needed to cover merely the loss of the subsidy. The insurers must predict how many people will drop their coverage because of a, for example, 400 percent premium increase, and of those people who stay in the plan, what will their claims be and what will the new premiums need to be to cover those claims.
The majority of those who will drop their coverage will be healthy. Those remaining in the plan will be less healthy, with higher claims. Since the those remaining will have fewer healthy to offset their claims costs, the new premiums will be much higher than just the dollar amount to cover the subsidies.
One industry expert said the general rule of thumb is that insurer rate hikes would be twice the amount of the loss of the subsidy.