More Obamacare Sticker Shock: HMO Rates Up 20%, EPO Up 18%, 12% Overall; Death Spiral for Insurers?

Courtesy of Mish.

If you did not have insurance before Obamacare, but do now, or if you are heavily subsidized, you may consider Obamacare a blessing.

If you are not in those select groups, then you are highly likely to be paying more for insurance now than before. And it’s going to get worse. Some plan types really take a premium hut.

Premiums Jump 12% On Average

Health Pocket reports Obamacare Insurers Propose 12% Higher Premiums for 2016.

Rates Up 20% for Health Maintenance Organizations and 18% for Exclusive Provider Organizations.

[Mish Comment: You can save a lot of money on a bronze plan, but you better not get major sick or in a major accident. As anyone with any bit of common sense expected, more people need more services so rates are going up rapidly].

On average the proposed premiums for 2016 Obamacare plans were 12% higher than the 2015 premiums. Silver and gold plans had the greatest average rate increases of 14% and 16% respectively, while bronze rates increased 9% and platinum rates increased 6%.

Average Rates

Plan Types

• Bronze pays 60% of covered costs 
• Silver pays 70% of covered costs
• Gold  pays 80% of covered costs
• Platinum pays 90% of covered costs

Network Types
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