Health Premiums Shoot Up, But Many Pay Less
WASHINGTON (AP) — Consumers getting financial assistance under former President Barack Obama's health care law will pay lower premiums this year, even though the "list price" for their health insurance shot up.
That odd result is reflected in a report issued Tuesday by the Trump administration.
After federal aid, the average monthly premium paid by subsidized customers on HealthCare.gov is dropping to $89 from last year's $106. That's a 16 percent savings even though the "list price" premium went up about 30 percent, now averaging $639 for those subsidized customers.
The bottom line is counterintuitive, but it shows how "Obamacare" subsidies cushion consumers from rising premiums.
Seema Verma, head of the Centers for Medicare and Medicaid Services, says more affordable health care options are needed for people who aren't eligible for the Affordable Care Act's income-based financial assistance.
But independent analysts say a big part of this year's premium increases is due to actions by the Trump administration, including the cancellation of major payments to insurers.
Insurers jacked up premiums to make up for the loss of federal dollars to cover discounted copays and deductibles that the companies were required to provide to low-income customers. Congressional authorization of the payments was under a legal cloud, and President Donald Trump pulled the plug. Bipartisan efforts to restore the money recently fell apart over disputes about abortion coverage.
"These numbers show for the first time how the Trump administration's termination of payments to insurers in a sense backfired," said Larry Levitt of the nonpartisan Kaiser Family Foundation. "The result, which is a little bizarre, is that consumers eligible for government premium subsidies are actually paying less out of their own pockets for insurance on average than last year."
About 11.8 million people signed up for coverage this year through HealthCare.gov and state insurance markets, a slight dip from last year.



Local organizations to host healthcare events
Scott Walker signs 64 bills, including restriction on abortion coverage for state workers
Advisor News
- Living longer, retiring poorer: Why fragmented systems are failing Americans
- Women say their advisors respect them, but talk down to them
- How PEPs compare with traditional 401(k)s
- Allianz studies why 42% of Americans retire sooner than expected
- Why advisors should be talking about life settlements
More Advisor NewsAnnuity News
- Reframing retirement income for greater certainty
- Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
- Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
- NAIC regulators continue pushing for annuity illustration updates
- Wink: Flat first-quarter annuity sales fall just short of $100B
More Annuity NewsHealth/Employee Benefits News
- Turning 65 brings Medicare enrollment choices
- Cigna to pull out of individual health market, affecting thousands in Colorado
- KY ranks 36th in 2026 Kids Count Data Book; child deaths, health coverage, housing create challenges
- Clark County residents warned to brace for health insurance rate hikes next year
- Is Washington state a good place to have a baby? Here’s where it ranks
More Health/Employee Benefits NewsLife Insurance News
- KBRA Releases Research – Private Credit: Much Ado About Nothing – Perspectives on Columbia Business School Paper About Private Ratings
- VUL sales skyrocket in Q1, signaling major market shift
- KBRA Releases Research – Private Credit: A More Balanced Review of the NAIC PLR Review Process for Insurance Balance Sheets
- Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
- State locates $107M in missing insurance funds
More Life Insurance News