By Kristen Hwang – CalMatters
Premiums for health insurance sold through the state marketplace will increase by nearly 10% next year, the highest rate hike since 2018, Covered California officials announced.
The projected 9.6% hike is the result of a “complicated time for health care,” Covered California Executive Director Jessica Altman said during a media briefing, but many Californians will be shielded from the increases as a result of federal and state financial assistance.
About 90% of enrollees qualify for some type of federal or state financial aid and 20% will see no change in their monthly premium, officials said. About 1.6 million Californians turn to the marketplace for health insurance, which offers plans that cost as little as $10 a month.
The rate increase, however, represents the return of a troubling trend: runaway health care costs, experts said.
“We’re seeing even larger increases in the private market. It’s worrisome,” said Anthony Wright, executive director of Health Access California, a consumer advocate group. “Individual consumers need health coverage and they need help now.”
During the COVID-19 pandemic, an influx of $3 billion from the federal government helped dampen the effect of rising health care costs in California. Covered California premium increases held below 2% between 2020 and 2022.
The federal government extended assistance for two more years, but the 2024 increase reflects post-pandemic inflationary pressures, such as higher drug costs, more people going to see the doctor, labor shortages and wage costs, Altman said.
The rate hikes vary by region, with more than one-third of enrollees potentially experiencing a double-digit increase, according to state data. Those who live in Mono, Inyo and Imperial counties may see the largest price increase at 15.8% compared to last year. Those same counties also experienced the largest increase last year.
“We’re glad that Covered California has federal and state subsidies to provide immediate help now, but we do need policy makers to double down on containing the costs of health care long-term,” Wright said. “This is a clarion call for the overall cost of health care going forward.”
Covered California waives deductibles for many.
Last week, the Covered California board voted to implement a plan that will make coverage more affordable for about 650,000 enrollees by eliminating their deductibles for the coming year.
The vote capped a drawn-out budget battle between Gov. Gavin Newsom, legislators and health care consumer advocates who have criticized Newsom for repeatedly moving money intended for health care subsidies into the state’s general fund.
Under the plan, deductibles will be eliminated for individuals earning as much as $33,975 annually and families earning up to $69,375 annually. Previously, people with those plans paid deductibles of up to $5,400. The new plan also significantly reduces out-of-pocket copays for doctor visits and prescription drugs.
“Despite the rate increase, Californians who enroll in health care coverage through Covered California will benefit from the greatest level of financial support ever offered…as we head into 2024,” Altman said.
‘Hefty’ health insurance increase
Christine Eibner, a senior economist with the RAND Corporation, a research and policy think tank, called the state’s projected premium increase “hefty.”
“There will be some sliver of people who will have to pay the full cost,” Eibner said. “A lot of people are protected so maybe they don’t care, but who is paying? Ultimately it’s the taxpayer.”
A significant number of people who are no longer eligible for Medi-Cal, the state’s public insurance program for very low-income individuals, also are expected to enroll in Covered California, which could drive future cost increases.
“That population is relatively expensive,” Eibner said. “People who are lower income have more health care issues, and bringing them into the market may lead to higher premiums.”
The state paused checking people for Medi-Cal eligibility during the federal COVID-19 public health emergency, but about 225,000 Californians have been kicked off since the state resumed monthly reviews this year.
Covered California’s enrollment period runs from November through the end of January.
The projected 9.6% hike is the result of a “complicated time for health care, I say it’s time to vote these idiots out. Not complicated at all.
Much smaller increase to that item on my budget versus my grocery line item!
No mention of the expected impact to cities from the obvious increased odds of more people becoming homeless after being unable to afford psych meds or other health care and bankruptcy from medical bills. Now is the time to address this, not after the next count of people living on the street shows an increase. Every single elected official – local, county, state, federal – who remains silent on this at the present time is part of the ongoing and escalating problem. Either stop voting for them or expect no relief.
I agree. They will not give up their positions. They’ll simply defer to the ignorant populus for “assistance”.
Ron
All insurance is a scam. Wait until you get the renewal on your auto and homeowner. My auto went up $210 for no reason than “just because” on a vehicle I drive around 5,000 miles a year. And check the line item increase on fire insurance for your home. Yeah mine went up $107.
And don’t make any claims on your homeowners policy as that is an instant 20%-30% increase as friends of mine found out. At least with auto you get “one claim for free”
No surprise… another one of libs bait & switch …. go in as a low cast health care then hike up premiums to match their own created inflation
And who pays for the, ah ah, whatever they’re called now…..illegal aliens coming from over the border…hmmmm???…one guess.
The medical industry and insurance is a great place both political parties could work together to do what is best for citizens but instead they just play games. To the Left, they only want socialized medicine which would be a mess. The Right bizarrely protects the most unethical RICO type behavior pretending that somehow it is in the name of capitalism. They play and play and play while we suffer.
Covered California is not cheap.
Back in 2020, Hubby was laid off, so we used Covered California and not Cobra.
He was able to get his job back, some didn’t, after 4 months.
We didn’t go to the doctor once in that period.
3 months later we got a bill from Covered California for $5000.
It was due to projected income going back to work, …our guess, we think.
Cobra would have been less, and coverage better.
Now on Medicare/ Senior Advantage, … old folks’ coverage.
Wow, only a 5k bill amazing!!
I thought socialized medicine was supposed to compete with private insurance to bring down the cost? wasn’t that the drum beat about 8 to 12 years ago? my rates have gone nowhere but up and the emergency rooms are treated like walk in clinics.
https://www.theguardian.com/world/2009/jun/11/obama-administration-universal-healthcare-reform
https://www.youtube.com/watch?v=0KFzfvbanc0
what ever happened to Biden’s promise of free Health care for all? hmmmmm what a conman
That was Bernie not Biden
Covered California isn’t the only carrier who will be raising rates for the 2024 plan year. Kaisers rates will be increasing between 15-25%. Most other carriers are showing average increases of 12-15%.
If you have employee sponsored healthcare, be prepared for your contributions to increase when open enrollment comes. This is across the board, and because Covered California is simply a marketplace, they don’t have control of what the carriers charge.
The entire industry need to be overhauled but because it is for-profit, it won’t be.
I heard many of the Nurse unions continually worked for years with no salary or benefits increases. So, they have to do the majority of the work and don’t even get paid a living wage?
I assume you’re responding to the part where I brought up for profit.
You do realize there are many companies that really non-profit who pay their employees, right?
When I say for profit, I’m saying there are CEOs lining their pockets while the nurses/doctors/patients suffer.
That is where the problem lies and will always be if the entire system isn’t overhauled.
Basic economics…. salaries go up….prices go up. you can never make a living wage as a single in the middle class as the goal posts always remain the same distance away. always takes two to achieve stability.
Hmmm. It surely cannot have anything to do with paying for all the increasing amounts of illegals flooding our systems. Interesting the get everything for free and we are always passed the bill.
You all thought those vaccines and masks were free?
All insurance especially deductibles, is a scam. I’ve been paying my premiums for years and have never had a claim. Then one day I needed to go in for a check up. My deductible is $700. They charge me $700 for a five minute check up. I won’t ever go again, unless I’m near death.
Covered California is a scam, unless you are destitute.
Call them for a quote, then go directly to the carrier and it will be less money every time. Why? Because their underwriting builds in the cost of you financing medical insurance for people you have never met.
The #medicalindustrialcomplex in USA is nothing short of criminal … murdered my dear mother in 2018. Scumbags.
Why, it’s almost as if Obama lied about “bending the cost curve down.”
I read thru all the current posting and I never saw a reference to that POS Obama who push for this program!! I cannot believe that all the sign-ups did not know it was Obama’s and possibly Biden’s little egg to hatch on an unsuspecting public and to fund their interests!!
I am not a Repub or a racist but I cannot help but to believe it was done again to garnish Black votes and maybe Latinos also. Latinos and the more intelligent Blacks need to wake up to this debacle.