Obamacare Sticker Shock: Average 2017 Premium Surges 24%

Tyler Durden's picture

Two weeks ago, we asked readers to spot the "odd inflation out" when looking at the map below.


The reference, of course, was to the state by state surge in proposed 2017 Obamacare premiums, contrasted with what the government contends is a modest 1.0% inflation rate.

Now, courtesy of a new study by independent analyst Charles Gaba - who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states - we can also calculate what the average Obamacare premium increase across the entire US will be: using proposed and approved rate increase requests, the average Obamacare premium is expected to surge by a whopping 24% this year.

As Politico notes, Cigna and Humana recently revised their rate requests in Tennessee, and the new filings are dramatically higher. Cigna is now asking for a 46% average increase, up from 23%, and Humana is requesting a 44% increase, up from 29%, The Tennessean reported on Friday. Expect these numbers to rise even more as insurance companies exit even more states.

So far, the average approved rate increase is roughly 17% according to weighted averages across just five states, Mississippi, New York, Oregon, Rhode Island and Vermont, Gaba reports. "Combined, all [five states] only make up around 6.3 percent of the total population," Gaba writes. "The numbers will no doubt jump around quite a bit as additional, larger states are plugged into the mix."

Here is what Charles Gaba calculated:

[I] noted that since I originally crunched the numbers for some states as far back as April, the situation in some states has likely changed somewhat due to carriers dropping out, joining in or re-submitting their rate request filings.


There have been significant changes to the requested rate filings in at least four states: Arizona, Connecticut, Maryland and Tennessee. In all four cases, I'm afraid the statewide weighted average has increased, either due to resubmitted filings, a carrier dropping out or both.


As a result of these updates, the national average increase requested now stands at 23.9%, up from the previous average of 23.3%.

Gaba will have to redo his numbers again, as moments ago Aetna announced that in 2017 it would exit 11 of 15, or more than two thirds, of Obamacare state exchanges in which it was a participant as of this calendar year. The only states in which Aetna will continue to provide Obamacare, are Delaware, Iowa, Nebraska and Virginia. Here is what CEO Mark Bertolini said in a statement:

“Following a thorough business review and in light of a second-quarter pretax loss of $200 million and total pretax losses of more than $430 million since January 2014 in our individual products, we have decided to reduce our individual public exchange presence in 2017, which will limit our financial exposure moving forward. More than 40 payers of various sizes have similarly chosen to stop selling plans in one or more rating areas in the individual public exchanges over the 2015 and 2016 plan years, collectively exiting hundreds of rating areas in more than 30 states. As a strong supporter of public exchanges as a means to meet the needs of the uninsured, we regret having to make this decision.


Aetna will reduce its individual public exchange participation from 778 to 242 counties for the 2017 plan year, maintaining an on-exchange presence in Delaware, Iowa, Nebraska and Virginia. The company will continue to offer an off-exchange individual product option for 2017 to consumers in the vast majority of counties where it offered individual public exchange products in 2016.

And while as a result of this latest exit, rates are set to go up even more, here is how much more citizens in various US states can expect to pay for their health insurance.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
yogibear's picture

Let's hit the sheeple with at least a double to wake them out of the Obama stupor.

Look, your liberal messiah is raping you.

CheapBastard's picture

"If you want to keep your doctor, you can keep your doctor. I promise!"


PS: Screw you, America!


~ Soweto O'Bama

wee-weed up's picture



If you like your ______, you can keep your ______!

Fill in the lying blanks...

It fits all his lies.

And his sycophant MSM never even inquired of him about it or anything else...

What ass-kissing politically-correct "journalistic" slime!

Comes the revolution...

The MSM will be first against the wall.

Boris Alatovkrap's picture

Barry Soetoro, legacy of healthcare in Amerika is like toothless washup whore, stumble through dark look for next fix of crack while open sore is fester and ooze.

zagzigga's picture

Yeah, what an outrageous promise he made! Has no sense of shame and doesn't step up like a man to own up to his mistake. Won't even admit that despite best intentions(if he ever had them), his program didn't turn out to be a success. The most traitorous candidate I have ever seen. At-least with chimp, you knew you were picking an idiot and didn't expect anything good from him. But Obummer was the so called "healer, uniter" and what not. He is the  biggest let down ever.

BeanusCountus's picture

Expect a statement from Whitehouse soon about how well ACA is "working", except for the greedy insurance companies.

Sudden Debt's picture

Obama will be like: we have to share the burden you greedy ass fat cats out their! So pay up for those who don't feel like working! Or are you a racist!?!?

And the lemmings will pay and ask: Can I give you some more sir??

boattrash's picture

The next major epidemic in the U.S. will most likely be "lead poisoning".

FireBrander's picture

WOW! 24%, that is shocking! Prior to "ObamaCare", my rates were decreasing EVERY year!

If it wasn't for fucking "ObamaCare", the insurance companies WOULD BE PAYING ME to take their insurance by now!

Fucking Obama!

SwiffFiffteh's picture

Sooo, you're mad. I get that.

...I'm just not sure why you're mad, or who you're mad at.

GUS100CORRINA's picture

America used to be the home of the brave and the land of the free.


New slogan for America: Home of the 'galactically stupid' and land of the 'slaves'.


It is no wonder Nancy P. (Congressional sponsor of Obamacare) had to change her phone number(s).


BeanusCountus's picture

Loved her statement on how terrible Guccifer 2 has been for her and her family. Best laugh I've had in years.

FireBrander's picture

"Let's hit the sheeple"

Most of these increases will fall upon businesses and governments...the average Joe could give a shit less about these increases.

Most of the people I know have little complaint about the "cost of health insurance" because they have SOMEONE ELSE picking up all, or most, of the cost.


The only people I know that are upset, are those not in good health...that's when the "co-pays" rob you fucking blind.

boattrash's picture

This is just the tip of the motherfucking iceberg. It will NOT stop until the masses beg for a Govt takeover, Single Payer System, just as planned.

Nexus789's picture

Single payer system is way too sensible. Will never happen while the health industrial complex can milk tax payer of billions.

nmewn's picture

Pelosi, Reid, Obama, Roberts, Gruber, Schumer...would you like to make a comment?


ACES FULL's picture

Are you kidding? They are too busy counting the money they have stolen through this scam to answer to the likes of us.

Kprime's picture

they can't count it.  they just pile it up and roll around in it.

Croesus's picture

Another Socialist Failure...

Nexus789's picture

If it were socialist you would not be screwed by the health insurance corporations as they pillage billons of tax payer dollars for delivering nothing of value or benefit.

Almost Solvent's picture

The langoliers are getting closer

Bill of Rights's picture

I'm as healthy as a 25 year old don't drink smoke no drugs , well weed here and there but I can run five miles no problem the weed just enhances my fuvk you additude . Low to no carbs no starches no sugar lots of green vegetables and proteins , actually there are days where I feel I don't even have to eat no bs... Im at my college days weight and tight ... Seen this shit coming, fuck Obama care ... Stsy healthy my friends .

Rikky's picture

Also stay thirsty my friends ;)

SubjectivObject's picture

Fats, saturated fats, don't forget the fats.

FireBrander's picture

"Weed"....oh, so evil...it will destory your life!

Micheal Phelps....23 gold medals...think how many he could have won if he wasn't a "weed" smoker...ruined his life, that "weed".

seek's picture

I can attest that highlighted increase for AZ in indeed real.

A whole lot of people will be dropping insurance in 2017 in the state, given the alternative is starving. The promised subsidies are are joke when you're looking at rates that are pushing 8-10K per person per year. A family could be earing the US median income and have all of their after-tax earnings going to health insurance in some cases.

There's a real October surprise, when those bills start hitting.

NoDebt's picture

Only sick people should sign up.  Penalty (err, excuse me, TAX) for not being covered is still WAY WAY below the cost of the health insurance.  And shit, if you get sick, just go sign up then.  They can't turn you away for a pre-existing condition.


seek's picture

No, but you can only sign up during the "window" that they've created, barring certain triggering events.

If your soon-to-be-preexisitng condition is in need to immediate care (e.g. you have an accident, are diagnosed with a cancer that's growing, etc) you're screwed.

This is another example of what I've been harping on as of late, namely the system is rigged so that only those are truly commited to being FSA get something out of it. Working a 50K a year job without insurance and get sick, they're going to come after all your assets, and you get a medical bankruptcyy. Not working at all for five years? Free pass. Working and want insurance, they're going to take all of your after tax income.You can't win if you're earning money.

I don't disagree with the course of action -- the insurance has priced itself out of the market, and thanks to that, most people are now better off without health insurance (or medical care) and playing the lottery of not getting sick. If they do, they should plan on either bankruptcy or death.

arby63's picture

I'm out with the next increase. I'm at $25K for a family of four. Can't do a dime more. I'm done. 

seek's picture

You're not alone.

I have a family member who's last insurance quote was more than they entire earnings in 2015. They're in the "coverage gap" so SOL. Ended up taking a job that has medcal insurance but pays minimum wage.

The kicker is they had the exact same job, (same employer, location, everything) 20 years ago and it paid $60K/year then. Now it's minumum with medical, and it netted out to a better hourly rate due to the medical coverage than if they worked anywhere else at twice the money and had to pay for insurance.

Fucking insane.

ACES FULL's picture


That got me thinking. Been wondering how can you bring jobs back to U.S. if Vietnam,China or wherever are paying a dollar or two an hour. If you bring them back to U.S. people are expecting 15 to 20 an hour. Prices for whatever they're making here would increase so much that you would be back in the same boat as before plus you can't export if your goods are too high. Maybe the plan is to overwhelm everyone with ACA to the point where they are HAPPY to take a job at minimum wage as long as they get insurance coverage. Then insurance companies either get bailed out or we go to single payer system, I even suspect that the former will lead to the latter. Once that happens they have brought us down to the level of the cheap labor countries. The ultra rich and politicians will not miss a beat so is that possibly the plan?

Nexus789's picture

Eliminate the humans and automate. Any process that has profit associated with it will be automated. If capital totally replaces labou. So that what labour is used is an overhead then location will be dependent on a range of other factors. Given this third world countries would be less attractive. Could have a resurgence of manufacturing but with peopless factories.

Government would have to introduce a robot tax.

AGuy's picture

Well, one what if for that person to sign up for every available gov't handout available. Since they are making minium wage it might put them at or below the poverty line.

My only thought is that this option of switching to minimum wage with healthcare coverage, but be a one year deal, since in 2017 premiums are going up. What ever deal that enables coverage, could be cancelled next year, which would leave them back with no coverage,and  earning minimum wage.


seek's picture

Given that I pay a fuckload of taxes I encouraged them to do what you suggest -- a couple years ago -- just to get some of what I pay in back.

The system is super rigged. The state has a tool that does just that -- identifies every handout available, but certain key things use clever means testing (e.g. if you own an asset, your net worth disqualifies you, and that includes if you have a house you paid 30 years on.) Putting them in with their financial stats and the best the tool comes up with is a state sponsored drug discount card that apparently anyone can get.

The welfare system seriously can't process someone who's worked their whole life and is now making 1/2, 1/4, 1/8 of what they used to due to structural changes in the economy. You can do everything right, get screwed by the government, and then get screwed again by the government for being too successful in your early years.

They'd literally be better off today had they not worked a day in their life. That's how fucked this system is.


johnconnor's picture

Pretty much any 40, 50 or 60 year old I know that lost his/her job since the 2008 crisis, and got a new job over the last 5 years, is making less than what they use to make and those on their 20s and 30s make really crappy salaries anyway. 

Nexus789's picture

Globalization evens it all out. Your standerd of living continues to fall while someone in the third world gets a few dollars a day. Fun being part of the global labour pool with a couple of billion Chinese and Indians.

AGuy's picture

Yup, Gov't has established itself an empire on the wealthfare state. All is well until the Wealthfare state collapses the economy.

I too pay a lot of taxes, but I am heading for the exit and going Galt. Closing on Property soon and will begin to wind down my business and focus my time and effort on a homestead. There is no point slaving away when most of my labor is used to pay taxes. I rather sideline myself then continue to slave away. Perhaps if there is a major reversal I will consider going back.


ZD1's picture



If you're an illegal in sanctuary states like California, you can work under the table and also get low-cost, government-run medical care or just show up at a hospital emergency room for free healthcare.



California's Gov. Moonbeam Brown also signed a bill last year allowing  immigrants in the country illegally and under the age of 19 to sign up for Medi-Cal.




NoDebt's picture

Exactly right, ZD.  There are AMPLE loopholes to get you through to the next enrollment "window" for Obamacare (or even forever).  Not that I'm trying to argue with Seek about this, because he's always struck me as a guy with a brain in his head, but there's only so much detail I can cover in a quick post.  What you point out is one of those details.  

There are a lot of other programs you can tap before, during and even AFTER you enroll in "Obamacare" that can fill in the gaps.

I'll give you a quick example from my own life:  My oldest son had cancer when he was a little tike.  He's fine now, glad to report, but his diagnosis gave him instant access to FULL 100% "CHIP" medical benefits until age 18.  "CHIP" is basically Medicaid for kids.  Now, in our case, it was unnecessary because we have primary insurance through our employers that covers almost everything.  What little is left over "CHIP" picks up the tab.  If we were to lose our company-sponsored heath coverage "CHIP" would become our primary insurance and pick up 100% of EVERYTHING.  In short, we're 100% indemnified against the cost of his health coverage, no matter how large or small.

And that's just ONE of a thousand programs out there that can and will "bridge the gap" until you could, in theory, sign up for an "Oamacare" policy where no preexisting condition can be denied.


Christophe2's picture

The big problem that no one seems to see in these comments is that Corporate Medecine is not designed to heal people, but to take advantage of them (make mo' money off u!).

So for nearly all illnesses, the worst solution is the doctor.  The only exception is when you have a broken arm or other trauma, but even then you can be sure you'll get lots of useless, harmful/sub-optimal stuff done to you.

Fuck the sellout doctors and their shitty hospitals: I have far better health taking care of it myself.  I live in Canada with 100% free healthcare (*puke*), and but I am smart enough never to go see those murderous crooks.


TLDR: who on earth TODAY is still dumb enough to get chemotherapy, for fucks' sake!?

NoDebt's picture

Remember when I said you'd be BEGGING for single payer some day?  Yeah, well, even I didn't think it would happen this quick.

VA-quality health care for all!  It's what's for dinner.  Just add it to the welfare state menu of "entitlements" and fund it with more debt.  What could possibly go wrong?


CheapBastard's picture

The manager of a local store is a vet who told me the wait to get to see a doctor is 6 months now in most places for vets. He took this manager job to get health insurance coverage.



stant's picture

Better find a retired guy working out of his basement , or Pakistani doing the same, got a Mexican witch doctor I use , pay him with beer and food stamps




azusgm's picture

My mother was in the hospital last week. Precious few of the doctors were WASP Americans. The internal medicine residency program has one. If things go south in this country, there may be a quick exodus of physicians back to their homelands.

Sam Spayed's picture

But BO said I was going to save $2500?????  What up?????

arby63's picture

Community oranizers and pretend-lawyers suck at math. He mean't it would be $25,000 per year minimum. 

Miffed Microbiologist's picture

And to think some thought he was going to pay their mortgage. Dumb shits are probably voting for Hillary. If you can't fix stupid at least contain it.


AGuy's picture

"But BO said I was going to save $2500????? What up?????"

No, you misunderstood. BO said the Federal gov't is going to save $2500. We he said "the people will save", he was referring to "the people's republic of the USSA"!


Golden Phoenix's picture

The government forces people to buy health insurance at gunpoint, causes its price to skyrocket, then points to that increase in spending as indicative of healthy consumer confidence. ><