Covered Cal premium hikes at 1%

Covered California’s average rate increase for 2020 will be just under 1 percent, officials said.

The good news came shortly after state lawmakers reinstated a penalty for residents who fail to carry health insurance, similar to the “individual mandate” imposed under the federal Affordable Care Act.

Covered California said it was “the lowest change” since the insurance marketplace launched.

All 11 health insurance companies return to the market for 2020, and Anthem Blue Cross will expand its coverage areas.

“The bold moves by Gov. (Gavin) Newsom and the Legislature will save Californians hundreds of millions of dollars in premiums and provide new financial assistance to middle-income Californians, which will help people get covered and stay covered,” said Covered California chief Peter Lee.

“This lower increase follows years of relative stability and will provide big savings to millions of California consumers,” Lee said July 9.

Covered California analysis project 235,000 additional consumers will be eligible for the new state subsidy program that extends well into the middle class. The new state subsidies will only be available through Covered California.

Restoring the individual mandate was a key factor in driving premiums between 2 percent and 5 percent lower per carrier, with an average decrease of 3.2 percent, Covered California said.

Covered California vendors’ five-year actual average increase in premiums has been 7.9 percent.

Anthem Blue Cross — currently only available in Northern California, Santa Clara County and the Central Valley — will expand into the Central Coast, parts of the Central Valley, Los Angeles County and the Inland Empire. Anthem Blue Cross will now be available to about 59 percent of Californians, officials said.