Why Obamacare is costing Americans their health care coverage
A new report by the Kaiser Family Foundation shows that health insurance premiums and deductibles are skyrocketing in some states, particularly in the first few years after the law took effect.
In many cases, it means the health plans in those states are paying more out of pocket than the federal government is providing.
The study found that premiums for 2017 were already higher than what they would have been under a law that would have kicked in in 2020.
The average deductible for a silver plan in the 36 states covered by the law is now $2,839, and the average deductible is now about $1,800.
The cost of a bronze plan in many states is even higher: The average annual deductible for an individual is $3,200.
The Kaiser report, “Cost of Coverage,” shows that a year after the Affordable Care Act passed, premiums for individual coverage rose by more than 6 percent nationwide, but the rate of premium increases in individual plans across the country was nearly the same.
In the 36 individual states that did not expand Medicaid under the Affordable Health Care Act, the average premium increased by just 0.6 percent.
Premiums in states that expanded Medicaid had an average increase of 4.3 percent in 2017, according to the Kaiser report.
The most dramatic increases were in Arizona, where the average increase was nearly 11 percent, and New Mexico, where it was more than 20 percent.
The costs of covering the uninsured are a significant burden to the states.
A large share of those costs go to paying for the costs of caring for the sick and injured.
In 2016, an estimated 2.5 million people were on Medicaid in the 26 states and the District of Columbia that did expand Medicaid.
The report shows that Medicaid beneficiaries are paying nearly $2.2 trillion more out-of-pocket for health care in 2017 than they did a year ago.
In 2020, a year that saw a sharp increase in the number of uninsured people, Medicaid beneficiaries paid an estimated $1.6 trillion in health care costs.