24 Jul Covered CA Enrollees to See Jump in Both Rates and Financial Aid, Agency Says

(Image courtesy of Covered California via Bay City News)

By Cole Reynolds
Bay City News

Rising health care costs will lead to an average 7.9% jump next year in insurance rates for those who receive coverage through Covered California, the agency announced Wednesday.

Also, for the first time, undocumented youths who have Deferred Action for Childhood Arrivals status will be eligible for health care through Covered California when enrollment opens Nov. 1.

Residents of most Bay Area counties will see their increases hover around the average, while Monterey, San Benito and Santa Cruz counties are slated for a jump of 15.7%. Those who receive their insurance through Aetna will also see a more than 15% increase should they choose to remain with the carrier.

Covered California expects to counter these increases by allocating its greatest amount of financial assistance ever to more than 1.7 million Californians registered through the program, according to executive director Jessica Altman. And since rates vary drastically by carrier and region, Altman said that some enrollees could save up to 11% by switching plans.

Despite the average increases, Altman said that a quarter of all residents statewide will pay no insurance premiums in 2025, a jump from the 20% who had no premiums this year. Nearly 90% of enrollees are receiving some form of financial assistance, Altman said.

Federal subsidies, including extended funding from the Inflation Reduction Act, have helped Covered California implement a smaller increase for 2025 than this year, when average rates leapt close to 10% compared to 2023.

California also earmarked $165 million in state funding in its most recent budget to extend a cost-sharing program it launched this year, the agency said.

Californians can sign up for insurance through Covered California starting on Nov. 1, and the 2025 rate changes will kick in on Jan. 1, 2025.

“With open enrollment around the corner, we are excited to provide more affordability than ever before, and to open our doors to more eligible Californians than ever before,” Altman said.

Copyright © 2024 Bay City News, Inc. All rights reserved. Republication, rebroadcast or redistribution without the express written consent of Bay City News, Inc. is prohibited. Bay City News is a 24/7 news service covering the greater Bay Area.