By Karen Pallarito

HealthDay Reporter

TUESDAY, Oct. 25, 2016 (HealthDay News) -- Prices of health plans sold under the Affordable Care Act are rising by double-digit rates, and the number of choices available to consumers in many markets is shrinking for 2017, the Obama administration has confirmed.

The announcement Monday comes on the brink of a Presidential election that may help determine the future of the private health insurance expansion that is often referred to as "Obamacare."

Open enrollment for Obamacare coverage begins Nov. 1.

Buyers who use the federal insurance marketplace -- called HealthCare.gov -- can expect rates for "benchmark" silver health plans to rise 25 percent in 2017, according to the U.S. Department of Health and Human Services (HHS).

Benchmark plans are the second-lowest cost silver health plans in a marketplace. The prices of these health plans are used to determine the premium tax credits available to help consumers with low or modest incomes buy coverage.

Overall, HHS estimates an average 22 percent increase across all states for 2017. That figure reflects benchmark premiums for four state marketplaces and the District of Columbia as well as the 39 states covered by HealthCare.gov.

The average consumer shopping for coverage on HealthCare.gov will have a choice of health plans from three health insurers. However, for roughly one in five buyers (21 percent), there will only be one insurer offering health plans.

Consumer choices have slimmed since several major insurers, including UnitedHealth Group Inc. and Aetna Inc., pulled out of Obamacare in most states.

"The marketplace was an experiment, and it doesn't seem to be working," said Eric Seiber, associate professor of health services management and policy at Ohio State University.

Caroline Pearson, senior vice president at the consulting and research firm Avalere Health, pointed to low enrollment as a major factor contributing to escalating exchange premiums.

"In 2014 when the exchanges began, high-need enrollees flocked to the program. Since then, subsidies and mandate penalties have not driven enough participation among younger, healthier individuals," Pearson said in a statement released Tuesday.

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