Obamacare premiums may rise 8% in California next year

Obamacare premiums may rise 8% in California next year

Covered California, the Golden State’s health insurance exchange, has estimated that Obamacare customers will likely see an average increase of 8 per cent in premiums next year.

The estimated increase in Omamacare premiums next year would put an end two consecutive years of modest 4 per cent hikes. However, experts were not surprised to learn about the potential rate hikes.

Sabrina Corlette, a researcher at the Center on Health Insurance Reforms of Georgetown University, said, “None of us should be surprised to see average rate increases that are slightly higher than last year. It’s still really difficult to discern where we will end up.”

The announcement of the projected increase in premiums comes amid escalating nationwide concern about insurance companies’ demand for double-digit rate hikes in the federal health law’s insurance marketplaces.

Covered California’s executive director Peter Lee underlined that the projected rates are preliminary but added that 2017 would be an adjustment year for rates under the Affordable Care Act (ACA).

Insurers participating in President Obama’s signature health law in the Golden State have already submitted their initial rates for next year, but the final figures will not be announced until July this year.