Covered California medical insurance to increase average of 5.2% in Sonoma County; 6% statewide [The Press Democrat]
Jul. 19—Insurance premiums in the state's Covered California health exchange are expected to increase by an average of 5.2% in
The increases, announced Tuesday, are in part due to a return to pre-pandemic health care usage and the potential expiration of federal assistance from the American Rescue Plan Act, which runs out in December, Covered California Executive Director
During the pandemic, the federal government beefed up subsidies to those who purchased insurance in the individual market through Covered California. Altman said if the American Rescue Plan Act is allowed to expire, 1 million low-income residents could see their premiums double, and 220,000 middle-income residents could end up dropping their coverage.
"That is, of course, in the backdrop of high inflation of other economic factors that are increasing costs for other household necessities like food, like gas, at a time when we know
Projected rate increases vary across 19 Covered California regions.
Covered
Altman said the statewide average increase of 6% is below the national average of 10% among the 13 states, and the
The years 2020, 2021, 2022 saw rate changes of 0.8%, 0.5% and 1.8%, respectively. The four-year average change between 2020 and 2023 is 2.3%.
Altman referred to the health exchange's projected increase as "moderate" and a result of several factors, including aggressive negotiations with carriers. She added that the state is also home to one of the nation's healthiest pool of residents, while record enrollment in 2022 brought the ranks of Covered California consumers to 1.7 million.
But Altman said the health care use and costs are returning to pre-pandemic levels. Two-thirds of the projected, statewide rate increase, about 4%, is due to higher utilization, with people once again seeking medical treatments that in some cases were put off during the pandemic.
Altman said the expiration of subsidies under the American Rescue Plan Act would have a significant impact on what consumers are actually paying in premiums. Under the Affordable Care Act, premiums were capped at 8.5% for individuals with incomes under 400% of the federal poverty level who purchase insurance through an exchange.
The American Rescue Plan Act eliminated that threshold, capping premiums for all who purchase health plans under an exchange at 8.5%. The increases people would see if the subsidies expire depends on their income levels, said
For example, in
In
Without the Affordable Care Act subsidies, the average monthly premiums for the 5th and 2nd district residents is about
On average, for those whose incomes are four times the federal poverty level — and receive no subsidy under the Affordable Care Act — the loss of the American Rescue Plan Act assistance for
"That's real money," he said. "If you're over 400% of poverty level, you are making
The American Rescue Plan Act ensures that households pay no more than 8.5% of their household income on their health plan premiums if they enroll through an Affordable Care Act marketplace.
The American Rescue Plan Act subsidies in
"That would only be a fifth of what we had," Wright said. "We really want the congressional money to be (extended). And then that allows us to use (state) affordability funds to provide better help with cost sharing, to eliminate deductibles, things like that."
A plan to extend the American Rescue Plan Act subsidies is currently in an economic plan being debated in
"We are expecting a vote in the next week or two — our hope is by the end of July or the first week of August, but it's likely to be a party-line vote," he said.
You can reach Staff Writer
___
(c)2022 The Press Democrat (Santa Rosa, Calif.)
Visit The Press Democrat (Santa Rosa, Calif.) at www.pressdemocrat.com
Distributed by Tribune Content Agency, LLC.
Medical Liability Insurance Market to Witness Huge Growth by 2028 : Allianz, AIG, AXA: Medical Liability Insurance Market 2022
FinTech in Insurance Market to Witness Huge Growth by 2027: Zipari, Corvus Insurance, Gusto
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News