Doctor holding calculator in hand - health care concept

Why Net Premium Increases Will Often Be Even Larger Than You Think

Obamacare by from ACA Death Spiral, June 5, 2015

I’ve written before that net premium increases for many individuals purchasing policies under the ACA will be higher than gross premium increases.  I’ve gotten some emails expressing puzzlement over this conclusion.  So, in this post I want to explain in some detail why this is the case.

An example

Consider five Silver policies on an Exchange. In 2015, here is a table showing their gross premiums

1. $4,161.55

2. $3,881.27

3. $4,338.10

4. $4019.11

5. $3550.64

Continue reading this piece here.