The 25 percent increase in Obamacare premiums for 2017 announced on October 24 is eye-popping. That is five times the increase that workers are likely to see in the cost of health benefits offered by employers. Politically, this is a disaster.
However, the jump in premiums is overdue. Insurers in the exchange market have found that the cost of providing coverage is much higher than they initially projected. We expect insurers to offer coverage to everyone, regardless of their health condition. That’s good social policy, but it is expensive.
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