Affordable Care Act premiums expected to soar 🔊

Affordable Care Act premiums expected to soar 🔊
August 26 06:52 2016 Print This Article

South Carolina households receiving health insurance coverage through the federal health insurance marketplace can expect to see their premiums for 2017 rise substantially.  Premium rates increased 14.9% from 2015 to 2016.

Tennessee Insurance Commissioner Julie McPeak recently announced a rate increase of 42% in the Volunteer State for 2017 and said the federal marketplace exchange system is “near collapse” in her state due to unaffordable policies.  Sen. Tim Scott predicted that South Carolina premiums will increase by as much as 25%.

South Carolina only has Blue Cross Blue Shield and subsidiary BlueChoice participating in the federal marketplace system.  Aetna and United Healthcare have left the marketplace due to heavy losses.

Charleston health insurance agent Larry Shirley explains that the young adults who were expected to enroll in the marketplace exchange policies have largely chosen not to participate.  He notes they would rather pay a fine to the IRS for not carrying health insurance than paying high monthly premiums.  With a small number of participants in the marketplace health insurance exchange pool, there is upward pressure of premiums.