Covered California Rates May Increase in 2015

Document of Health Insurance Policy for background
Document of Health Insurance Policy for background
A report released Thursday reveled that the average premium for an individual enrolled in the Covered California state run exchange may increase by 4.2% on average. While officials claim that some plans may see a decrease in premium rates, most plans will increase by this estimated 4.2%. Los Angeles, Northern California, and San Diego are just a few of the regions in California where premiums are expected to increase. For a full list of counties where rates may increase, click here.

When will these changes take effect?

The next open enrollment period runs between November 15 to February 15, 2015. This is a time when individuals and families who enrolled in a Covered California plan can choose to either renew their existing plan, switch to an alternative plan, or leave the exchange altogether. There were 1.4 million Americans who are currently enrolled on the Covered California exchange so it will be the responsibility of many officials to get these individuals to renew their plans along with encouraging more Americans to enroll on the exchange.

The rate increases are relatively low according to the Covered California Director. What prevented the rates from increasing more?

  • Healthier individuals enrolling on the exchange
  • Large number of sign ups
  • Medical-loss ratio rule where insurers are required to put 80% of premiums toward health costs

Which insurers will participate in the 2015 state run exchange?

  • Anthem Blue Cross
  • Blue Shield
  • Health Net
  • Kaiser Permanente
  • L.A. Care Health Plan
  • Chine Community Health Plan
  • Molina Healthcare
  • Sharp Health Plan
  • Valley Health Plan
  • Western Health Advantage

What does this mean for you?

If you are enrolled in a Covered California plan in one of the regions where premiums are expected to increase, be prepared. Know which plans are available, what the rates are, and determine if you are eligible for a subsidy to offset the cost of premiums.

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