Hikes add $10 billion to cost of Obamacare

WASHINGTON — Taxpayers will fork over nearly $10 billion more next year to cover double-digit premium hikes for subsidized health insurance under President Barack Obama’s law, according to a study being released Thursday.

The analysis from the Center for Health and Economy comes as the Republican-led Congress is preparing to repeal Obamacare and replace it with a GOP alternative whose details have yet to be worked out. With incoming President Donald Trump likely to sign such legislation, historic coverage gains under the 2010 health law are at stake.

The study estimates that the cost of premium subsidies under the Affordable Care Act will increase by $9.8 billion next year, rising from $32.8 billion currently to $42.6 billion.

The average monthly subsidy will increase by $76, or 26 percent, from $291 currently to $367 in 2017.

Currently more than 8 in 10 consumers buying private health insurance through HealthCare.gov and state markets receive tax credits from the government to help pay their premiums. Those subsidies are designed to rise along with premiums, shielding consumers from sudden increases. But the bill gets passed on to taxpayers.

Shortly before Election Day, the administration revealed that premiums for a midlevel benchmark plan on HealthCare.gov would jump by an average of 25 percent next year.

Administration officials are touting the premium subsidies as they race to sign up as many people as possible before open enrollment ends Jan. 31, about a week after Obama leaves the White House. Ads for HealthCare.gov say most consumers can find subsidized coverage for as little as $50 to $100 a month.

Republicans are planning a multistep process to first repeal the health law and replace it later. The new study is unlikely to affect the “repeal” part of the debate.

However, the findings could affect how Republicans design future subsidies that would be part of their replacement legislation. Some kind of limit on assistance is more likely to appeal to them.