SALT LAKE CITY — As consumers in Utah and around the country are expected to see higher health insurance premiums and fewer choices next year under President Barack Obama’s health law, the White House says rates will still be relatively inexpensive for most Utah consumers.
If rates for all health plans available on the federally run insurance website increased 50 percent next year, about 80 percent of Utah consumers would see monthly rates of $75 a month or less, according to a report Wednesday from the U.S. Department of Health & Human Services.
Federal health officials say the hypothetical increases would be offset because tax credits that help people afford the insurance would also rise, and the online insurance marketplace allows people to shop around for the best plan.
While most workers and their families are covered by employers, the online insurance marketplaces are a key prong of Obama’s health law, offering subsidies and a place to shop around for health insurance.
In Utah, about 164,000 are enrolled in insurance through the marketplace, with about 88 percent of them receiving some kind of federal tax credit to help pay the costs.
The rates for Utah 2017 plans are expected to be released in late September or early October, after the state Insurance Department finishes reviewing them, but insurers are expected to seek major premium hikes around the country.
The expected price increases come as insurance companies around the country have grappled with fewer people than expected signing up for coverage, and those getting coverage turning out to be sicker and costlier to cover than anticipated.
