For Many Obamacare Enrollees, 2018 Will Be Cheapest Year Ever

Open enrollment in the Affordable Care Act’s marketplaces, where about 12 million people buy health insurance, begins on Wednesday. According to a report by the Department of Health and Human Services’ policy division, 80 percent of HealthCare.gov enrollees will be able to purchase a plan for $75 or less per month.

After several failed attempts to repeal the Affordable Care Act this summer, the Trump administration turned to regulatory rollback and spending cuts to chip away at the law. This month, Trump halted payments that reimburse insurance companies for reducing out-of-pocket costs for low-income enrollees. Since insurers are still required to lower those costs, monthly premiums for certain silver tier, or mid-level, plans have skyrocketed.

But many low-income and middle-class customers will be spared the higher costs. Shoppers with incomes less than four times the poverty line—about $48,000 for an individual or $98,000 for a family of four—are eligible for subsidies that reduce the cost of monthly premiums.

Since those subsidies rise with the cost of silver plans, it will be easier than ever for people who receive premium subsidies to find cheap plans. That's good news for customers. It's bad news for taxpayers who will pay the difference.