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Why premiums are going up for some in 2017

How Shopping Around on the Insurance Marketplace Could Save You Money

Insurance premiums are set to spike in 2017, but most Americans will be unaffected.

Insurance Premiums are set to increase in many areas across the U.S., and according to the Fiscal Times, the majority of states may see monthly payments increase by 10 percent or more. Importantly, however, this is unlikely to affect most citizens.

Getting online and using the Insurance Marketplace is the best way to see what subsidies you and your family qualify for and getting an accurate estimate of your monthly costs.

Sizeable rate increases

"Most folks will not be affected by the increases in premium rates."

In some states, the largest insurance companies have opted out of the Obamacare marketplace or abstained from offering their full services. As a result, some citizens will have fewer options when choosing coverage this year. Less competition generally leads to higher prices, which according to the Fiscal Times, is a major contributor and undermines the mission of Obamacare.

In 2017, nearly 20 percent of individuals and families will only have one option when selecting health insurance. Arizona represents one of the states with limited competition, and it will see the highest premium increases. Rates in the Grand Canyon State are estimated to rise by 116 percent in 2017 and will on average cost $422. Oklahoma, Tennessee, Minnesota, Alabama, Pennsylvania and Nebraska will also see increases of 50 percent or more. With tax credits and other subsidies, however, most people are unlikely to see changes in their monthly expenses.

Let's do the numbers on the Obamacare rate hikes. https://t.co/ET5xA11bqh pic.twitter.com/xHz2CBggvM

— Marketplace (@Marketplace) October 30, 2016

A majority of Americans unaffected

Jon Gruber, an economist with the Massachusetts Institute of Technology told CBS Boston that most folks will not be affected by the increases in premium rates. This is because the majority of folks around the U.S. are insured through an employer, and for the families getting coverage through the Marketplace Exchange, tax credits and other subsidies protect against inflated costs.

Why shop around

Even for individuals and families living in states with limited choices, shopping around on the Insurance Marketplace is a wise investment. Here, different packages and options can be compared side-by-side, and it's easier to select the right plan. Visitors can learn more about tax credits and other subsidies that bring down the cost of insurance. Ultimately this serves as a tool for understanding all available options when selecting the right coverage. Shopping around on the Insurance Marketplace is wise even for folks with employer-sponsored plans. It may be possible that a sleeker, more cost-efficient package is available, and this can be helpful for individuals who pay for services they rarely use. Again, the marketplace serves as a resource for making the most informed decision possible when it comes to healthcare.

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