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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 the Big Premium Increase for 2017?

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Question: I received notification from Anthem Bluecross that an 36% increase is coming for 2017 1/1/17, I don't understand why such an increase, could you possible know why?

Answer: There are two primary reasons. (1) Since 2014, the federal government has reimbursed health insurers who enroll higher-cost consumers in their plans through a reinsurance program. In 2017, those reimbursement payments will end. (2) Insurers now have a better understanding of the risk pool. In previous years many insurers set premiums too low to cover their actual costs. Even so, 2017 premium increases in California are lower than in most other states.

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