Health Insurance Subsidies Cost Rises to Nearly $10 Billion

The cost to U.S. taxpayers of health insurance premium subsidies under the Affordable Care Act will rise by $9.8 billion to $42.6 billion next year, from $32.8 billion currently, according to a Center for Health and Economy study.

It said the average monthly subsidy will increase $76 (26 percent), from $291 to $367, the Associated Press reported.

The higher subsidy is meant to reduce the impact of double-digit premium hikes.

More than 8 in 10 consumers who purchase private health insurance through HealthCare.gov and state markets receive tax credits from the government to help pay their premiums, the AP reported.

Republicans plan to repeal the Affordable Care Act and replace it with an alternative, but have provided no details.

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