There are seventeen states that are not going to comply with Obamacare and set up health insurance exchanges. The Obama administration isn’t happy about this so they will punish those states by instituting a surcharge for any policies sold through the federal exchange.
Residents of states that refuse to set up health insurance exchanges under Obamacare are set to be hit with higher premiums under new rules announced by the Health and Human Services Department.
Insurance companies will be charged 3.5 percent of any premiums they sell through the federal exchanges, the department announced Friday.
And insurers are likely to pass that surcharge on to clients, leading to higher premiums.
The only states to be affected are those that refuse to set up their own exchanges because of opposition to the Patient Protection and Affordable Care Act. They are almost certain to be those under Republican control. In those states, HHS will set up the exchanges.