Obamacare Rates Jump an Average 12 Percent for 2016

• June 11, 2015 1:50 pm


Obamacare insurers have proposed rates for 2016 that would be an average of a 12 percent increase over last year and up to 20 percent depending on health care provider, according to data released by HealthPocket.

"Given the rate of general inflation in the country, and the economic situation, the rate increases were surprising to us," Kev Coleman, head of research and data at HealthPocket, told CNBC. "I think they’re (Obamacare recipients) going to be frustrated. We tend to forget that millions of people are unsubsidized … these people are paying full freight."

The website obtained the increased rates from The Centers for Medicare & Medicaid Services and graphed the change from 2015 to 2016 on Wednesday.


The graph charts the increase across four provider network types and the four metal-based Obamacare coverage plans.

The four metal ratings correlate to a plan that will cover a certain percent of medical costs. Bronze covers 60 percent, silver 70 percent, gold 80 percent, and platinum 90 percent.

HealthPocket examined premium costs in public rate filings for 2016 Obamacare plans in 45 states. Premiums were compared for 40-year-old non-smokers in the largest city in each state. On average the proposed premiums for 2016 Obamacare plans were 12% higher than the 2015 premiums. Silver and gold plans had the greatest average rate increases of 14% and 16% respectively, while bronze rates increased 9% and platinum rates increased 6%. On average across the four metal tiers, premiums were up 20% for HMOs and 18% for EPOs. Premiums for POS plans were up 15% from 2015 to 2016, while PPO premiums were up just 8%.

The silver plan was the most popular for enrollees in 2015, making up about 67 percent of the market. The silver plan also has the largest estimated price increase for 2016. Exclusive Provider Organizations (EPO) on the silver plan will see a 20 percent increase and Health Maintenance Organizations (HMO) will increase 19 percent.

Coleman said, "This is really the first time that America's really seeing true Affordable Care Act rates."