Covered California rates to jump 13.2 percent

Posted at 12:29 PM, Jul 20, 2016
and last updated 2016-07-20 15:29:54-04

SACRAMENTO, Calif. - Covered California says average monthly premiums will increase by more than 13 percent next year for people who buy health care coverage through the state's insurance exchange.

The increases released Tuesday are significantly higher than the 4 percent increases in each of the last two years. They come as many other states report big increases in premiums for the fourth year of "Obamacare," President Barack Obama's health overhaul.

Covered California Executive Director Peter Lee says two large insurers, Anthem Blue Cross and Blue Shield of California, drove much of the average increase. He says consumers can limit the impact by changing health plans.

Customers have been more expensive to insure than initially expected. Provisions of the law that help insurers absorb the uncertainties are also expiring.

Covered California sells insurance coverage to about 1.4 million people who don't get coverage from an employer, Medicare or Medi-Cal.