Dive Brief:
- Covered California officials project premiums for plans on the state exchange will go up an average of 8% next year, after two years of more modest 4% increases, Kaiser Health News reported.
- The news comes as analysts discuss the possibility of double-digit premium hikes occurring around the U.S. and impacting the upcoming November presidential election.
- The California estimate is still speculative, as insurers in the state have submitted their initial 2017 rates but have not yet negotiated the numbers with state officials.
Dive Insight:
Covered California executive director Peter Lee suggests 2017 will be an adjustment year for premiums due to the expiration of federal programs to protect insurers from high losses during the ACA's first years, as well as the continued rise in healthcare costs and specialty drugs.
However, “We shouldn’t put too much focus on this 8% number when we will know the reality in two months,” he told California Healthline, adding, "We believe in California we won’t see the significant headwinds many other states are experiencing.”
Indeed, while there is an upward trend expected around the country, California may be among the more fortunate states, some suggest, due to its comparatively healthy risk pool.
Healthcare consultant Robert Laszewski told KHN Californians will be lucky if they see just the projected 8% increase.
“That is not a troubling rate increase,” he told the publication. “California is coming back toward the average. A bunch of states would die for just an 8% increase in 2017.”