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Obamacare Could Mean Steep Rate Hikes in These Four States

Daily Ticker
Obamacare Could Mean Steep Rate Hikes in These Four States

Despite reports of delays, Tuesday, October 1st is the kickoff for new exchanges (or online markets) where individuals can buy healthcare insurance under Obamacare.

Related: Gullible Americans Fuel Obamacare's Bad Rap

But what will this mean for the prices individuals pay for their premiums?

To find out, Avik Roy, a conservative and senior fellow at the Manhattan Institute and author of The Apothecary blog on Forbes, has analyzed (with his colleagues) the public price information that’s available now for 13 states and the District of Columbia.

Related: Obamacare: More Coverage at Lower Cost For Many Young People

They found the steepest rate hikes will be seen in New Mexico, Vermont, South Dakota, and Connecticut. The rates are 130, 97, 83, and 59 percent higher, respectively.

Check out the video above to see why Roy thinks rates are going up in these states and others due to Obamacare -- he explains his methodology for his analysis and also how subsidies play into the equation.

Related: Grading Obamacare: Why the Government Should (and Shouldn’t) Control Health Care Coverage

And while the Department of Health and Human Services reported that on average plans are costing 16% less than was projected earlier by the Congressional Budget Office (for the second-cheapest silver plan), Roy explains why he thinks this figure is misleading. He also details what he anticipates rates will be when the Federal exchanges are all online.

Got a question about Obamacare?

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