Speak with a Covered California certified agent! Call (888) 413-3164 or Shop Online Now

Shop and Compare

California Health Insurance Plans and Rates

It's easy. Just enter your zip code.

Covered California Q&A

Covered California and Obamacare related questions from consumers, employers and agents are answered by Phil Daigle with the best information available at the time. Archived entries may no longer be accurate as the Covered California and Obamacare knowledge-base is evolving quickly. TO REQUEST A PERSONAL RESPONSE INCLUDE EMAIL ADDRESS.

Why are 2014 Premiums So High?

By on | No Comments

Question: The 2014 monthly premium used in the subsidy illustration on your website is $1,187 for a family. Can you explain why it’s so high?

Answer: Yes. The “unsubsidized” premiums used in the premium subsidy illustrations are unrealistically high for California residents. Here’s some reasons of the top of my head:

  1. In 2009, while the Affordable Care Act was still being debated, the Congressional Budget Office (CBO) was asked to access how the ACA would affect healthcare costs by 2016. It was a very educated guess and part of the challenge based on predicting the rate of medical inflation over a 6 year period. They had no hope of being very accurate to begin with and, as it turns out, premium inflation (at least through 2012 was lower than forecasted. They came up with a annual premium of $14,250 for a family of four. That’s a national average, but California is well below the national average.

Leave a comment

Do You Have California Health Insurance Questions?

Ask An Expert

View Previous Questions
Call Us at (888) 413-3164

© 2022 California Health Benefit Advisers, LLC
Home / About / Start Shopping / Ask a Question

“Covered California,” “California Health Benefit Exchange”, and the Covered California Logo are registered trademarks or service marks of Covered California, in the United States. This web site is owned and maintained by California Health Benefit Advisers, LLC, which is solely responsible for its content.