Premiums rising may lead to Obamacare bankruptcy
A distrust in the Obama administration is forming because of the new Obamacare premiums. People will now have to pay a greater amount per month to get the same coverage. From 2015 to 2016, the price for the Obamacare insurance rose 7.5 percent. The Obamacare administration mentioned that in 2017 the premiums are expected to rise another 22 percent.
The government programs that are in place to keep premiums low are ending this year. Many people that are insured from their employers will likely not see an increase in their premiums. The people who have individual private plans will be hit hard with this increase. Roughly ten million people will be affected by this change, and it will be hard for them to recover.
80 percent of all people insured by Obamacare are currently getting government subsidies to help them pay their premiums according to The New York Times. A subsidy is government money that provides aid for certain programs. These people will not be affected by the premium increases, but there is a catch. The people who are receiving subsidies have to find a less expensive health care plan and switch to it.
Switching to a different health-care plan may not seem like a big deal, but for most people it is. Obamacare currently covers many doctors and hospitals, but since people will have to switch plans they will have to find new health care providers. People with very specific healthcare problems will have to find new specialists who are able to treat them, and those who live in rural areas will have to travel even further to receive medical attention.
The 10 million that are affected might not be able to pay the new costs for their coverage. If a person is uninsured they will have to pay a fine of 2.5 percent added to their taxes. For some people it is more affordable to just pay the fine. This means that less money will be going into the Obamacare system, and now the system has the potential of going bankrupt.