A June analysis of premium changes by the Kaiser Family Foundation, a clearinghouse for information on the health care system, says consumers buying individual coverage through exchanges can expect their 2016 premiums to go up an average 4.4 percent for mid-tier plans compared to 2015. The California Department of Managed Health Care and the California Department of Insurance have 60 days to review those proposals, after which time final rates will be published.
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“The good news is that it hasn’t gone up by very much but it would be better news if the rates had went down”, said Beth Capell, policy advocate for Health Access California, a statewide consumer advocacy coalition.
“This proves them totally wrong”.
The moderate rate increases, both in Orange County and statewide, will allay fears of double digit premium hikes that have circulated throughout the media in recent months.
But he acknowledged that the state has plenty of unfinished business and that some families will face hefty rate hikes.
Some consumers could even achieve a reduction in their premium, of an average of 4.5 percent, if they choose to shop around. And some people have indicated they feel shortchanged in terms of the doctors they can see and the service they get from their health insurer or the exchange when problems arise.
More doctors and hospitals in a region, could lead to lower premiums.
“This shows how a stable, competitive individual insurance market can work”, Levitt said.
It also imposes standardized benefits on participating plans.
California is among a few states set up to haggle for better prices. Pricing for one of two health plans offered by Sharp will drop by an average of 1.2 percent. Almost 90 percent of Covered California enrollees qualify for financial assistance.
Inland residents now make up about 10 percent of overall state enrollment, which is up from 8.8 percent during the first enrollment period in 2013.
In the letter, Counihan noted that healthier people have been signing up more recently, and that medical costs have been increasingly modestly.
While Covered California’s announcement Tuesday includes specific premiums for 25- and 40-year-olds as well as weighted averages for the state as a whole and for individual counties, a full list of prices for each age group is not yet available. Covered California is the first state health exchange in the nation to implement a prescription-cap policy. Next year’s proposed rates will be on the Covered California website starting August 3, and the site will be updated with final prices in October.
Levitt also said the state agency’s active role has helped keep premium increases down. Meanwhile, a Northern California consumer can minimize their increase to 1 percent by doing the same.
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Kevin Counihan, the federal CEO of the ObamaCare marketplace, wrote a letter to state insurance commissioners last week pressing them to scrutinize the proposed rate increases. “A 4 percent increase is a testimony to good enrollment in California”.
