Buying health insurance through California exchange could cost you more next year
Covered
And central
Competition among health plans -- the Valley has had four including United -- has helped keep down the costs that consumers have paid in monthly insurance premiums.
Nationwide, increases of as much as 60 percent have been projected for consumers shopping for health plans through the Affordable Care Act exchanges for 2017. But Californians shouldn't expect that kind of sticker shock, experts say.
"So far, it looks like single-digit increases," said
Premium rates can vary by region, and
And regardless of an increase, about 90 percent of
Californians have not experienced runaway premium increases since implementation of the Affordable Care Act in 2014. The state has been blessed with lower-than-historic levels of medical inflation of about 4 percent, Bacchi said. "This year, as we head into 2017, and we start planning for premiums, we're seeing a return to more historical growth," he said. Prior to the Affordable Care Act or Obamacare as it is still called, the growth was from 5 to 10 and 15 percent, he said.
Four factors are affecting the setting of premium rates in 2017, Bacchi said: increased spending on medical care, skyrocketing cost for prescription drugs, the phase-out of two federal programs designed to stabilize the insurance market, and enrollees gaming the system by signing up for coverage only when they need medical care.
Wehrle did not provide rates for 2017, but acknowledged factors that could increase them: "A greater and increasing use of services, changes in program and rules, higher costs of prescription drugs -- including new, high-cost specialty drugs -- have been realities all health plans have faced," he said.
According to the
But the cost of prescription drugs is the fastest-growing segment of health-care spending. Prices for new drugs are astronomical, and in addition "drug companies are raising prices of existing drugs by two-to-threefold," Bacchi said.
The health plan association also cites the loss of two Affordable Care Act provisions for increasing premium rates.
The "reinsurance" and "sunset corridor" provisions of the Affordable Care Act are set to end this year. Both programs helped spread costs more evenly for health plans, Bacchi said. Estimates are nationally that the loss of the programs could increase premiums as much as five percent or greater, he said. "It creates some uncertainty for health plans moving forward."
A large number of Californians also are signing up for health plans outside of open enrollment, the set time each year for people to pick health plans for the coming year, Bacchi said.
Health plans are concerned people are "gaming the system" by waiting until they are sick and then citing a special circumstance to get coverage, he said. By law, every American is required to have health insurance, but people can buy coverage outside of open enrollment when there is a change in circumstances, such as a move, a marriage or divorce.
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