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But officials said the increase would have been closer to 5 percent had the individual mandate not been zeroed out.
The plans allow insurers to offer coverage that doesn’t follow all the strict regulations in the Affordable Care Act.
The provisions that should be “struck down” include protecting people with pre-existing medical conditions from being charged more or being denied coverage, according to the Justice Department. Now, it will be up to several Democratic state attorneys general, led by California AG Xavier Becerra, to defend the law, and they have already received permission to intervene in the case.
Gavin Newsom, the Democratic lieutenant governor and a proponent of a single-payer health care system, won a spot in the general race for governor last night. He’ll face Republican businessman John Cox in the fall.
Lee, driven by a desire to make health care more attainable, runs one of the most closely watched government agencies in the nation’s most populous state.
The projected 11 percent premium increase includes the expected rise in health care costs overall, which is about 6 percent each year.
While the governor might not have to make a decision on single-payer, it’s likely health care will be a big issue in the next few years as California tries to stabilize its marketplace and expand coverage.
The administration has cut funding for outreach and advertising by about 90 percent. “The reality is clear: If the federal government maintains the current cuts in marketing and outreach, premiums will be higher than necessary,” said Peter Lee, the executive director of Covered California.
In the next three-year contract that Covered California strikes with insurance companies, there will be a quality-focused stipulation: any hospital that doesn’t meet certain targets for safety and quality can be excluded from the health plans sold through the marketplace.
Some advocacy groups and lawmakers would want to see the government compete with private insurers in the health care marketplace and offer more coverage choices in regions with few current options or high-priced plans.