Obamacare premiums are going up by an average of 25 percent next year

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The Obama administration says that Obamacare health-insurance premiums will go up by an average of 25% in 2017.

This, it argues in a new report, is because prices are slowly getting in line with costs.

From the report:

Notably, Marketplace rates through 2016 remained 12 to 20 percent below initial projections from the independent Congressional Budget Office. In addition, Urban Institute researchers recently found that 2016 Marketplace premiums were well below premiums for comparable employer coverage. Even with this year's increases, Marketplace premiums in 2017 will still be roughly in line with the projections by the Congressional Budget Office.

The news comes as another blow to the Affordable Care Act (ACA), which critics have argued simply doesn't work. And over the past year, many companies large and small have agreed. The country's largest insurer, UnitedHealth, has said that it would roll back some of its Obamacareofferings.

Oscar, a startup created specifically to facilitate the ACA, is pulling out of markets in Dallas and New Jersey.

Additionally, while 15 insurers will be joining the ACA exchanges, 83 are leaving, according to the administration.

But President Barack Obama remains optimistic that the plan will get through these growing pains.

"You're getting better quality, even though you don't know that Obamacare is doing it," Obama said before a crowd in Florida last week.

"Thanks, Obama," he added.

See more on Obamacare:

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MIAMI, FL - DECEMBER 15: A person walks into the UniVista Insurance company office where people are signing up for health care plans under the Affordable Care Act, also known as Obamacare, on December 15, 2015 in Miami, Florida. Today, is the deadline to sign up for a plan under the Affordable Care Act for people that want to be insured on January 1, 2016. (Photo by Joe Raedle/Getty Images)
US President Barack Obama speaks about healthcare reforms and the Affordable Care Act, known as Obamacare, during the Catholic Hospital Association Conference in Washington, DC, June 9, 2015. AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, DC - MARCH 04: Supporters of the Affordable Care Act gather in front of the U.S Supreme Court during a rally March 4, 2015 in Washington, DC. The Supreme Court was scheduled to hear oral arguments in the case of King v. Burwell that could determine the fate of health care subsidies for as many as eight million people. (Photo by Alex Wong/Getty Images)
Protestors hold placards challenging 'Obamacare' outside of the US Supreme Court on March 4, 2015 in Washington, DC. The US Supreme Court faces a momentous case Wednesday on the sweeping health insurance reform law that President Barack Obama wants to leave as part of his legacy. The question before the court is whether the seven million people or more who subscribed via the government's website can obtain tax subsidies that make the coverage affordable. A ruling is expected in June. AFP PHOTO/MANDEL NGAN (Photo credit should read MANDEL NGAN/AFP/Getty Images)
WASHINGTON, DC - MARCH 04: Supporters of the Affordable Care Act gather in front of the U.S Supreme Court during a rally March 4, 2015 in Washington, DC. The Supreme Court was scheduled to hear oral arguments in the case of King v. Burwell that could determine the fate of health care subsidies for as many as eight million people. (Photo by Alex Wong/Getty Images)
US President Barack Obama speaks about healthcare reforms and the Affordable Care Act, known as Obamacare, during the Catholic Hospital Association Conference in Washington, DC, June 9, 2015. AFP PHOTO / SAUL LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images)
WASHINGTON, DC - MARCH 04: Five-year-old James Cook of Cleveland, Ohio, participates in a rally to support the Affordable Care Act in front of the U.S Supreme Court March 4, 2015 in Washington, DC. The Supreme Court was scheduled to hear oral arguments in the case of King v. Burwell that could determine the fate of health care subsidies for as many as eight million people. (Photo by Alex Wong/Getty Images)
WASHINGTON, DC - MARCH 04: Supporters of the Affordable Care Act gather in front of the U.S Supreme Court during a rally March 4, 2015 in Washington, DC. The Supreme Court was scheduled to hear oral arguments in the case of King v. Burwell that could determine the fate of health care subsidies for as many as eight million people. (Photo by Alex Wong/Getty Images)
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