Premiums for health insurance sold in the state’s marketplace will rise nearly 6% next year, officials at Covered California announced last week.
This increase is the highest in California since 2019. In the past three years, insurers have maintained an increase of less than 2%.
Price changes vary by region – from an 11.7% increase in Imperial, Inyo and Mono counties to no change in Fresno, Mafumu, and Area counties.
As wages increase, personal financial support they usually do, too. Aid comes from household income, so aid can offset some of the increase. But people who don’t qualify for the subsidy will have to pay the full cost of the increase.
“Payments are a reflection of how health care costs are, how they vary from region to region, how health care costs are growing over time, which we know is very high and rising in this country,” said Jessica Altman, the organization’s director. Covering California.
He noted that inflation in California is still low compared to other states. A A recent analysis by the Kaiser Family Foundation they found an average increase of 10% they have issued 72 insurances in 13 other countries.
The rise in risk, Altman said, was largely due to people resuming visits to doctors and procedures they had stopped during the height of the COVID-19 pandemic. There is also the cost of inflation.
About one percent of the increase, however, is attributed to loss of additional income from the federal government, which is expected to be completed by the end of this year. Without additional care, people will have to pay more, forcing young, healthy people to drop their care. And when healthy people leave the market, wages go up for everyone.
The federal government American Rescue Plan last year he gave California is about $3 billion was selected for two years of additional financial assistance through Covered California. The new law helped reduce people’s monthly payments, which led to more people signing up for health insurance. It also expanded who was eligible for savings to include middle-income earners.
Currently 1.7 million Californians buy their groceries at the state market. Covered California says if Congress doesn’t renew the American Rescue Plan, about 1 million people will see their money double and about 220,000 could lose coverage.
“(The increase in the rate) of the number of people getting help is almost all divorces and out-of-pocket payments. The most important thing is what happens with the aid of the (American Rescue Plan),” said Christine Eibner, an economist at the RAND Corporation, a. tank tank
Altman said that Congress will soon do its best to avoid consumer confusion in the fall. Covered California typically sends renewal notices to enrollees beginning in October, before the enrollment deadline, and public clarity at that time is important.
“There have been arguments both ways – ‘Is it going to be permanent? Is it going to be temporary? Is it going to stay in the current state? …Or is there going to be a change to it?’ – and we don’t know,” said Altman about negotiations are taking place in Washington, DC
California 2022-23 The budget includes $304 million for middle-market enrollees that would begin if Congress no longer provides support. While that’s helpful, it won’t fill the hole that the $1.7 billion annual grant would leave, Altman said.
Covered California also announced that another insurer, Aetna CVS Health, will join the state market and become an option for residents of El Dorado, Fresno, Kings, Madera, Placer, Sacramento and Yolo. Meanwhile, Anthem Blue Cross will expand into San Diego County.