Marketplace Consumers Likely to Find Substantial Premium Hikes This Time Around

Higher premiums when buying insurance as well as higher penalties for not having insurance are 2 considerations Americans should keep in mind as they browse the marketplace exchanges for the Patient Protection and Affordable Care Act, according to a recent Motley Fool report.

The current open enrollment period runs November 1, 2015 through February 1, 2016—a 15-day shift ahead from last year’s, which ran November 15, 2014 through February 15, 2015. In 2017, the open enrollment period is expected to change again, slimming down from 3 months to just 2.5 months.

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“We are also expected to see the most robust premium inflation we have witnessed in years in 2016,” the article reported. “The Great Recession has helped keep premium inflation lower than the historical average for years, but 2016 is shaping up to be the first year in some time where insurers request substantial premium increases.”

The Motley Fool cited a Washington Examiner analysis of premiums for 37 states and Washington, DC, that found 231 policies were requesting double-digit hikes in premium prices. Of them, 26 policies were requesting a minimum premium hike of ≥40%. A dozen requested price hikes of ≥50%.

Meanwhile, penalties for failing to comply with the individual mandate are also expected to rise. The fine, which had been the greater of $95 or 1% of a person’s modified adjusted gross income in 2014, will increase to the greater of $695 or 2.5% of a person’s modified adjusted gross income in 2016, according to the report.—Jolynn Tumolo

Reference

Williams S. Tips to save money on Obamacare in 2016. The Motley Fool. October 25, 2015.