Government confirms double-digit Obamacare price hikes

With a week to go before enrollment for 2017 begins, Obama administration officials confirmed premiums on the government health care exchanges will see double-digit increases. The cost of the mid-level plan will rise an average of 25 percent in the 39 states that have federally run insurance markets. The increase is not a surprise to analysts because news of state-by-state price hikes has trickled out for several months. Although government officials claim most of the increases will be absorbed by federal subsidies, critics say the spiraling prices prove Obamacare is unworkable. And not everyone who buys insurance on the private market qualifies for a subsidy. In Arizona, unsubsidized premiums for a 27-year-old buying a mid-level plan will jump from $196 to $422—a 116 percent increase. And amid ballooning prices, choice is shrinking. In many markets, consumers will only have one insurer to pick from, after major national carriers pulled out due to financial losses.

The Associated Press contributed to this report.