Covered California predicts a possible spike in rates residents are paying for policies.
California health insurance premiums may sharply rise over the next few years. In fact, Covered California’s own analysis predicts a 35 percent increase by 2021.
When compared to the current rates, Californian consumers may pay 35 percent more over three years.
The state is among a total of 15 predicting average rate hikes of 35 percent by 2021 compared to their current rates. Across the United States, consumers purchasing coverage on an insurance exchange may pay more. The California health insurance premiums increases will be among the highest.
The average health insurance rate hikes will be between 12 and 32 percent by next year. Covered California conducted the analysis producing these predictions. The Californian insurance exchange currently sells coverage to 1.2 million people across the state. Those individuals do not receive employer based health plans.
The California health insurance premiums analysis aligns with other research results and forecasts.
For instance, the Urban Institute recently predicted an 18 percent increase in 2019 Californian health insurance rates.
“Consumers will see a premium increase show up on notices in September and October for their January 2019 premium,” said Covered California Executive Director Peter Lee.
Insurance prices will continue their increases after next year, said the Covered California analysis. That said, while the state is one of fifteen to see a 35 percent hike by 2021, it could be worse. The research predicts a rate spike of 50 percent for nineteen states. Moreover, another 17 states could watch their rates skyrocket by 90 percent.
Ten million Americans will be affected by the health insurance rate hikes. These are among the people who are receiving federal subsidies to help cover their health plan premiums. That said, the six million people not receiving the subsidies will also be affected.
It is unclear what direction the California health insurance premiums will take after that point. The research predicted only until 2021. California is often considered to be an indicator of the ACA’s trends as a whole. It is often a leader in taking fresh directions.