Covered California Will Use Higher Rates If Insurer Subsidies Aren’t Settled By Mid-August
A recent analysis commissioned by Covered California estimated that premiums for silver plans would jump by 16.6 percent if federal funding for cost-sharing subsidies were lost.
The Mercury News:
Uncertainty Over Federal Money Could Spur Covered California Rate Hikes
If the federal government does not clarify by mid-August whether it will continue an important health insurance subsidy for consumers next year, California’s state-run exchange will instruct its insurers to sell plans with significantly higher premiums to cover the loss of the money...At issue are the so-called cost-sharing subsidies that reduce what some consumers pay out of their own pockets for medical expenses such as physician visits, prescription drugs and hospital stays. These reduced rates are only available to Covered California enrollees who choose silver-level plans, the second-least expensive among the exchange’s four tiers. The subsidies are to help people whose annual income is between 139 percent and 250 percent of the federal poverty level, or about $34,200 to $61,500 for a family of four. (Bazar, 6/8)