“California continues to show the nation what can be done when you build on and strengthen the Affordable Care Act,” its executive director said in announcing an average rate increase of under 1 percent for the 2021 plan year.
That 0.6 percent estimate would be the lowest increase since the launch of Obamacare. It comes on the heels of a rate hike of only 0.8 percent in 2020.
A few carriers were predicted to have price hikes of as much as 9 percent, however. Residents of several counties also were expected to fight the trend.
Covered California credited “affordability initiatives” such as the state’s revival of the individual mandate enforcement penalties, which went into effect in 2020. It also cited “ongoing investments in marketing and outreach that have led to increased enrollment and one of the healthiest consumer pools in the nation.”
These moves “are providing stability and lower costs in the face of national uncertainty,” said Peter Lee, executive director.
“After a large increase in 2019 caused by the federal action that zeroed out the penalty on individuals failing to have insurance coverage, California has seen two years of less than 1 percent premium increases,” Lee added.
Gov. Gavin Newsom said: “Access to affordable health care coverage is more critical than ever as our nation and state navigate the Covid-19 pandemic.”
The preliminary average rate change of 0.6 percent varies by region and by an individual’s situation.
The highest predicted rate hikes were expected from carriers Anthem Blue Cross (6 percent), Valley Health Plan (9 percent), Oscar Health Plan (7.6 percent) and Health Net (3.4 percent).
Premiums for the large healthcare provider Blue Shield were estimated at a reduction of 2.4 percent.
By region, the largest rate hikes were expected in Santa Clara, San Joaquin, Stanislaus, Merced, Mariposa and Tulare counties.
In late March, Covered California warned of massive rate hikes caused by the pandemic. That nightmare scenario never became reality.
The preliminary rates will be filed with California’s regulators, the Department of Managed Health Care and the Department of Insurance, and are subject to their final reviews.
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