California insurance premiums for health plans could spike by 8%

california insurance premiums

The rates for 2017 may be noticeably more expensive for residents of the Golden State.

California insurance premiums may be heading upward next year according to an estimate that has been produced by the state’s exchange, to the point that the average person would be paying 8 percent more.

Should this estimate be accurate, it will double the average increase seen over the last two years.

This year and last year, there were increase to California insurance premiums, but they were a notably lower 4 percent. This latest forecasted increase to the rates across the state was a part of the annual budget proposed by the insurance exchange. It has arrived at a time in which there has been a rising concern over the intention of health insurance companies to seek rate increases in the double digits in the marketplaces across the country.

Increases to California insurance premiums are always watched very closely as an indicator of nationwide trends.

california insurance premiumsIt is more than likely the predicted rate hikes will start to play a role in the presidential election. Republicans have made a habit of leaping on the announcement of rate hikes as they say it is a clear indicator that the health care reform put into place by President Barack Obama will not have the ability to keep insurance costs down to a level that will be affordable for the average consumer.

Health insurance companies in California have now submitted the final 2017 rates, but the actual announcement of the final figures will not be revealed until July as officials in the state must first conduct private negotiations.

Covered California Executive Director Peter Lee has taken care to state that the prediction of the health insurance rate increases is still in its preliminary phase. That said, he has also pointed out that there have been some one-time factors that have come into play with respect to the Affordable Care Act, which have meant that “2017 will be an adjustment year” in terms of the premiums people will be paying for their health plans.

When addressing the issue of California insurance premiums and the direction they’re taking, Lee explained that “We shouldn’t put too much focus on this 8% number when we will know the reality in two months,” adding that “There are a number of reasons 2017 will have higher rate increases than the last few years. But we believe in California we won’t see the significant headwinds many other states are experiencing.”

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