Covered California 2017 Health Insurance Plan Rates-Press Release
(.pdf, 0.0 B)
Author: Peter V. Lee
Publisher: Covered California
Covered California announced rates for its health insurance plans for 2017. The statewide average change will be 13.2%, up from approximately 4% in each of the last two years. Covered California in the press release below, states, while the rate increase is higher this year, the average rate increase over the last three years amounts to 7%, which is lower than the rate increases before the Affordable Care Act (ACA) was enacted. This yearâ€™s increase reflects a one-time adjustment due to the end of reinsurance, a three-year program to help stabilize rates in the early years of the ACA, which expires Dec. 31st of this year. Additionally, the cost of specialty drugs is driving up premiums, and two of our major plans seem to have had a high number of people enrolling and needing care during special enrollment.
Below is the press release issued July 19, 2016. Covered California notes that it continues to have 11 health insurers offering coverage in 2017, including plans that are expanding into new territory. The press release includes a link to the detailed Plan Rate Book, describing each of our eleven health plans and the 19 separate rating areas across California. Rate details by pricing regions can be found in â€œCovered Californiaâ€™s Health Insurance Companies and Plan Rates for 2017,â€ posted online at: http://coveredca.com/news/pdfs/CoveredCA-2017-rate-booklet.pdf
Note that none of the preliminary rate changes announced July 19, 2016 are effective until they are approved and implemented starting January 1, 2017. Consumers will receive coverage renewal notices beginning in October that will provide information about their rates and premium subsidy for 2017. Covered California will encourage consumers to shop when it comes time for renewal. Nearly 80 percent of consumers may be able to save money, or see a rate increase of no more than 5% if they switch plans. Additionally, for most of those insured through Covered California, the bulk of the premium increase will be absorbed by federal subsidies they receive to help pay for health insurance.