California ACA Exchange Rates to Jump 13.2 Percent on Average

by Caitlin Owens, Morning Consult

Obamacare exchange premiums in California will go up an average of 13.2 percent next year, although almost 80 percent of consumers could pay less or see a premium increase of no more than 5 percent if they shop around.

This is up from an only 4 percent bump this year and a 4.2 percent raise in 2015. Covered California, the state’s exchange, also announced some plans will be moving into new areas.

“Shopping is going to be more important this year than ever before,” said Peter Lee, executive director of Covered California.

The exchange is widely regarded as one of the most successful. But Lee has also warned 2017 will be a transitional year. Medical costs themselves are going up, and it’s also the end of two risk mitigation programs.

About 90 percent of Covered California enrollees receive premium assistance, which will help absorb most of the premium spike. The Obama administration has repeatedly emphasized that the subsidies will protect the vast majority of enrollees from most increases.

California is the latest state to roll out a double-digit premium increase for 2017. While this was expected, final rates will be announced very shortly before the November election and could be fresh in voters’ minds as they head to the polls.

Supporters of the law like to remind of pre-Obamacare times, when premium increases were also common.

“Even though the average rate increase is larger this year than the last two years, the three-year average increase is 7 percent — substantially better than rate trends before the Affordable Care Act was enacted,” Lee said.

Read more from Morning Consult here.