The Obama administration is optimistic that higher premiums will not stop people from enrolling in insurance plans for 2017, but don't expect more Millennials to get on board.
According to a report from the Department of Health and Human Services, premiums for a midlevel exchange plan will increase an average of 25 percent across the 39 states served by the federal exchange or Healthcare.gov. That's before taxpayer-provided subsidies that people may qualify for to pay for their plan.
Regardless, the announcement comes at a time when more young and healthy people are needed to enroll and offset the cost of covering older, less healthy individuals. The problem is, not every young person is on board with ObamaCare, due in part to cost and quality of coverage.
"Young people have absolutely rejected ObamaCare, and I think this is something the administration did not anticipate," says Emily Jashinsky, spokeswoman for Young America's Foundation. "I think they overestimate their understanding of young people; I don't think it's nearly as strong as they think it is."
Earlier this fall, White House advisor Denis McDonough said many young people, especially males, have something of an invincibility complex. He pointed out that many millennials can probably get a marketplace plan for $75 a month or less – cheaper than their cell phone bill.
If you ask Jashinky, that doesn't say much about the quality of their healthcare plan.
The Obama administration estimates 13.8 million enrollees for next year. The period begins November 1, 2016.