Covered California Rates To Increase By 13.2%
Sacramento, CA — The cost to purchase a plan through the state’s health insurance exchange will jump next year.
Covered California announced today that the average plan will increase by 13.2%. Covered California, created under President Obama’s Affordable Care Act, is now in its fourth year. The past two years have both seen rates go up by an average of 4%.
Covered California Executive Director Peter Lee acknowledged that it may force several customers to switch plans within the exchange. He claims, “Shopping is going to be more important this year than ever before. Almost 80% of our consumers will either be able to pay less than they are paying now, or see their rates go up by no more than 5%, if they shop and buy the lowest-cost plan at their same benefit level. That’s the power of shopping.”
Covered California sells insurance coverage to about 1.4 million people who don’t get coverage from an employer, Medicare or Medi-Cal. There are 11 health insurers that provide plans through Covered California.