Covered California just announced its rates for 2017 and they are going up – the statewide weighted average will increase by 13.2%. Some consumers may see only modest increases in their premiums while others may see significant increases depending on the health plan and where they live. Several factors contributed to the increased rates, including:
- A one-year adjustment to account for the end of the transitional reinsurance program in 2016. The three-year reinsurance program was designed to stabilize premiums by providing additional funding to insurers that incur high claims costs for enrollees. It is estimated the end of the program will increase premiums by 4% to 7% in 2017.
- Rising health care costs, including specialty drugs.
- Special enrollment into plans by consumers only after they are sick or need care had a significant impact on rates for two Covered California plans.
- Increased demand for health care by those previously without access to the health care system.
11 insurers will be offering plans through Covered California for 2017. Some insurers will expand their coverage areas, such as Oscar who will be entering the San Francisco, Santa Clara and San Mateo markets and Molina who will be expanding into Orange County.
Those currently enrolled in Covered California plans will receive notices starting in October with information about rates and plan changes.
Rate details are available in “Covered California’s Health Insurance Companies and Plan Rates for 2017.”