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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.

How Much Will Premiums Increase in 2014?

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Question: How much will premiums increase in 2014?

Answer: We’ll know by May of this year, when health plan issuers must have their final premiums ready. In the meantime, we can only guess. A 2009 Congressional Budget Office (CBO) report suggested an increase of between 10% and 30% beyond what they would have been without the ACA. But higher premiums for people who purchase coverage in the individual market will be offset by federal subsidies for low and middle-income families. The increases on the individual market are because of ACA provisions that: (1) Require plans to cover a broader scope of items — including maternity care and mental health treatment; (2) Mandate that premiums for older beneficiaries be no more than three times higher than what younger people pay; (3) Bar insurers from rejecting people with pre-existing conditions; and (4) Limit deductibles.

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