US Obamacare insurance costs to jump 25 percent

Americans will see Obamacare health insurance costs jump an average of 25 per cent next year, adding fuel to the US political firestorm over the system that Republicans have repeatedly tried to overturn.

The big increase will be seen in the 38 states with federally-managed health care exchanges, according to a report released late yesterday by the Department of Health and Human Services.

Despite the sharp increase, far higher than in previous years, the report said "most consumers are experiencing below average increases," and face lower costs than insurance plans outside the system.

Those with low incomes will have their premiums capped and more than eight in 10 are eligible for government subsidies to reduce the cost.

The Affordable Care Act, popularly known as Obamacare, has allowed millions of uninsured people to get health insurance, with no limits based on their current health, the dreaded "pre-existing conditions," reducing the number of individuals across the country without insurance to 8.5 percent.

But the influx of sick people into the insurance exchanges and not enough healthy young people as expected has raised the costs of the insurance.

The increasing premiums will provide more ammunition for opponents of outgoing President Barack Obama's signature health sector reform, now entering its fourth year, including Republican presidential candidate Donald Trump, who has said he intends to scrap the system.

Polling has consistently found the public to be narrowly divided over Obamacare. Health care is the fourth most important issue for voters in the current election cycle, according to the Pew Research Center.