The ruling party has reacted to the bad news that is circulating against Affordable Care Act marketplaces for quite some time now. The news indicates that ACA marketplaces have been facing serious challenges as a few of the insurers have quit the program, and the premium rates are on the rise as well. However, the Obama administration is determined to fight this notion.
In a recent analysis, HHS assured that the recent hike in premium rates would not make the ACA plans unaffordable to the American citizens. A report from HHS Office of the Assistant Secretary for Planning and Evaluation indicates that all small-group premiums and individual premiums will rise up to 25 percent by the year 2017. However, the report further reveals that approximately 70 percent of the US citizens will receive coverage at a price of $75 or less.
As for the insurers leaving ACA, UnitedHealth Group, Aetna, and Humana had earlier stated that they would withdraw their participation from the plans. Oscar Insurance Corp, which was funded by venture capital, has also decided to exit from New Jersey and Texas ACA markets. Furthermore, a consulting firm suggests that there will only be one health insurer for approximately 36 percent of exchanges in the year 2017.
The commissioner of the Tennessee Department of Commerce and Insurance commented that the ACA exchange was “very near collapse” even after approving the increase in premium rates from 44.3% to 62%. The members of both parties and the Presidential candidates have been looking at the premium rates very closely, as they will have to deal with this topic during the election.
Republican nominee Donald Trump has severely criticized the ACA and used the words “catastrophic” and “like never before” for the premium rates. Whereas, Hillary Clinton, the Democratic Presidential nominee, has suggested an option called public plan option in the exchanges.
An analysis from Kaiser Family Foundation revealed that only an average increase of 9% for silver plans in major cities, even though many insurers claimed that the increase was in double digits. HHS analysis, however, ensured that the plans would be affordable to the US citizens, as there are many deals available to the citizens and they can conveniently choose an affordable plan from them.