The cost of the state’s health insurance market will increase by an average of 6% next year. The agency also warned that costs could double for some enrollees if Congress does not renew federal funding.
Premiums for health insurance plans sold through the state’s marketplaces will increase by about 6% next year, California officials announced today.
This rate increase is the highest California has seen since 2019. Over the past three years, insurers have kept the average increase below 2%.
Rate changes vary by region – from an 11.7% increase in Imperial, Inyo and Mono counties to zero change in Fresno, Kings, and Madera counties.
When the rate increases, personal financial assistance he does, too. The subsidy is based on household income, so the subsidy can offset some of the increase. But people who don’t qualify for subsidies will bear the full cost of the price hike.
Jessica Altman, executive director of the department of health care, said: “The costs capture what health care costs are, how they vary across regions and communities, how health care costs increase over time, which we know. in this country it’s already big and growing,” said Jessica Altman, the company’s executive director. California is closed.
She noted that inflation in California is still lower than in other states. IN A recent Kaiser Foundation survey received an average premium increase of 10% submitted by 72 insurers in 13 states.
The increase, Altman said, is attributed to people returning to doctor visits and procedures that were delayed during the peak of the COVID-19 pandemic. There is also a general high cost of goods.
About one percent of the increase, however, is attributed to potential loss of effective support from the federal government, which will expire at the end of this year. Without more help, people will pay more for their premiums, likely pushing young, healthy people to drop coverage. And when healthy people leave the market, prices go up for everyone.
The federal government America’s Rescue Plan last year California with about 3 billion dollars which is set aside for two years of additional financial assistance through Covered California. The new law has helped to lower the amount of money people pay for their monthly premiums, and has made more people enroll in health insurance. Those eligible for savings have also been expanded to include middle-income earners.
Currently 1.7 million Californians purchase coverage through the state’s marketplace. Covered California estimates that if Congress does not renew funding for the US Savings Program, nearly 1 million people will see their benefits double and nearly 220,000 will drop coverage.
“(The revenue generated) for the community being supported is almost entirely separate from what they pay out of pocket. What’s more important is what happens with the (US) bailout,” said Christine Eibner, a senior economist at the RAND Corporation, a think tank.
Altman said the sooner Congress acts the better chance of avoiding consumer confusion in the spring. Covered California usually sends out renewal notices to enrollees starting in October, before the sign-up period, and getting people informed then is key.
“There are references both ways – ‘Is it going to be permanent? Is it going to be temporary? Is it going to be in the current format?…Or are there going to be some changes to it?’ — and we really don’t know,” Altman said about discussion taking place in Washington, DC.
California 2022-23 The budget includes 304 million dollars for mid-market entrants who will begin to enter if Congress does not renew the aid. While the aid will not fill the $1.7 billion annual funding gap it will leave, Altman said.
Covered California also announced that another insurer, Aetna CVS Health, will enter the state market and become an option for people in El Dorado, Fresno, Kings, Madera, Placer, Sacramento and Yolo. Meanwhile, Anthem Blue Cross will expand into San Diego County.
Covered California insurance rates to increase Source link Covered California insurance rates to increase