Health insurance prices up 7.5 percent for benchmark plans

Health insurance marketplace
Posted at 5:59 AM, Oct 27, 2015
and last updated 2015-10-27 05:59:00-04

WASHINGTON - The federal government says the cost of a benchmark plan on will increase 7.5 percent for 2016 coverage, but most people will still be able to buy a plan for less than $100 a month, after tax credits.

Monday was the first day people could see 2016 prices on the website established under President Barack Obama's health care law. A new sign-up season starts Sunday, but consumers can start browsing now as they prepare to buy.

Rates increased by double digits in some states using the federal marketplace, but other states are seeing lower prices.

Insurers in many states had underpriced their plans and are raising rates because of medical inflation and higher claims than expected. Insurers are trying to find the right prices in the new marketplace.