Best Health Insurance Company Logos

If you have been following the race for the presidency you know that a hot topic of conflict is on Obamacare. Donald Trump wants to abolish it and Hilary Clinton wants to refine it.

Regardless of who gets elected, as it stands today, individual's monthly premiums are likely to increase by double digits with the national average being around 11% with some about as high as over 50%. In a number of states health care providers are dropping out, decreasing competition and increasing rates. While some raise in premium costs might be expected year to year, this jump is troublesome for many Americans.

In some states, such as Tennessee, individuals could see a 62% increase in their plan. Last year alone there was a 38.6% increase for Tennessee's lowest cost silver plan. While several insurance providers in the state have quit providing due to claiming substancial losses, the 3 insurance providers that have not yet dropped out are requesting a minimum average increase of 44% for their plans. "When insurers are losing money, they're going to raise premiums,"says Larry Levitt, a policy expert at the Kaiser Family Foundation in Menlo Park, Calif. "There's really no choice in the matter."

There are many reasons for the high spike such as an unexpected increase in healthy young people not signing up. Insurance providers must have enough healthy people in the group of consumers enrolled in their plans to offset the financial risks in covering the sick enrollees who have high care costs. This shortage of healthy enrollees is often attributed to the high premiums that healthy people do not want to pay as well as seemingly low tax penalties for remaining uninsured.

Another reason for the jump is because newly insured patients also sought treatment more often than predicted throwing off predictions for insurance companies. Health plans "were playing in this new market; they didn't know what it would look like," says Kevin Lucia, a researcher at Georgetown University in Washington, D.C. "A number of them underpriced. Now they are pricing more accurately. That may be part of the reason you are seeing adjustments on premiums."

Couple that with the price hikes in pharmaceutical drugs (Abbvie's Hep C treatment and Mylan's EpiPen) and it is easy to see why so many insurance companies are jacking up their prices.

"The question is, will the subsidy rise commensurate with the rate increase of my current plan?" says Marc Pierce, CEO of Stonegate Advisors, a health care analytics firm in Chicago. "Whether the subsidy rise affords me greater buying power or not depends on how the other products in the market, which I might prefer to buy, are priced."

While it is difficult to know exactly how much these health rate hikes will effect you, the general consensus is that premiums will rise next year. Consumers would be smart to plan for that impact as soon as the new year starts and begin to look around at the end of this year for the best deal possible. While premiums will rise, you can always count on to help you save money on your drugs that aren't covered by your insurance.