The Obama administration admitted on Monday that premiums will see a dramatic spike under Obamacare next year and many Americans will be left with only one insurer.
The unwelcome announcement comes just days before Americans head to the polls to elect the next president of the United States.
The Associated Press has more on the implications for Obamacare enrollees:
Before taxpayer-provided subsidies, premiums for a midlevel benchmark plan will increase an average of 25 percent across the 39 states served by the federally run online market, according to a report from the Department of Health and Human Services. Some states will see much bigger jumps, others less.
Moreover, about 1 in 5 consumers will only have plans from a single insurer to pick from, after major national carriers such as UnitedHealth Group, Humana and Aetna scaled back their roles.
“Consumers will be faced this year with not only big premium increases but also with a declining number of insurers participating, and that will lead to a tumultuous open enrollment period,” said Larry Levitt, who tracks the health care law for the nonpartisan Kaiser Family Foundation.
In some states, the premium increases are striking. In Arizona, unsubsidized premiums for a hypothetical 27-year-old buying a benchmark “second-lowest cost silver plan” will jump by 116 percent, from $196 to $422, according to the administration report.
HHS told The AP that low-income Americans are eligible for subsidies to cover new premiums. But such a scenario helps the person making $25,000 a year more than someone making roughly $40,000.
Obamacare has also reportedly seen a drop of 28 percent in HealthCare.gov insurers, resulting in fewer choices for the consumer.
During a Monday rally in Florida, Republican nominee Donald Trump called Obamacare a “disaster” and vowed to “repeal and replace” the law with his own plan to provide “great health care at a fraction of the cost.”
Democratic nominee Hillary Clinton has suggested making fixes to President Obama’s signature health care law — more of a revise rather than repeal strategy.