SACRAMENTO — Thousands of people throughout California who benefit from Covered California are facing a 12.5 percent increase on their insurance premiums next year, state officials announced Tuesday.
In addition, about 10 percent of the people enrolled under the state’s version of former President Barack Obama’s signature health care program will have to look for a new plan, because Anthem Blue Cross will end its coverage in most of the state.
Despite that announcement, Covered California officials stressed that all 11 health insurance companies will return to the market in 2018, and that 82 percent of consumers will be able to choose from three companies or more.
Covered California Executive Director Peter Lee said that the program remains “robust and strong.”
“While there is ongoing uncertainty and a lack of clarity at the federal level, consumers who need affordable health insurance will continue to have good choices in Covered California next year,” he said.
Covered California provides coverage to about 1.5 million people, most of whom benefit from the Affordable Care Act.
The new plans will be available from Nov. 1 to Jan. 31.
The rate change varies by health plan and region. In Region 9, which includes Santa Cruz, Monterey and San Benito counties, Blue Shield patients will pay an additional 8-24 percent. Health Net will pay 10 percent less, while Kaiser will see a slight increase of 3-7 percent.
More than 67,000 people are signed up for coverage in Region 9. All will have a choice of two insurance companies, and some will have as many as four.
Lee said the average statewide rate increase for 2018 will be 12.5 percent, but added that consumers can reduce that amount to less than a 3.3 percent increase if they shop for the best value and switch to the lowest-priced plan in the same tier.
“Covered California’s competitive market means consumers have the power to shop and find the best value,” Lee said. “We know our consumers look for the best deal and often end up paying less than the initial rates suggest.”
Lee said that most customers will receive financial help from the federal government to offset the increase.
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