California Health Insurance Rates Jump in 2014
The new rating boundaries for the individual insurance providers are among many items that California state lawmakers are debating during a healthcare special session in Sacramento aimed at implementing the new federal Affordable Care Act. Many Americans will be required to have health coverage or pay a penalty if this new act passes.
Under the proposal for six regions in California, the insurance department estimates that most premiums for similar coverage would increase as much as 22% in Los Angeles and 23% in the Bay Area, but has not specified the Orange County area in their documentation.
California Insurance Commissioner Dave Jones is pushing for an 18-region plan that would cap increases at 8% across the state. That and many other alternatives are expected to be discussed at state hearings this Wednesday.
Many healthcare experts and consumer advocates have expressed concern about the affordability of premiums in 2014. Rates are expected to rise because the federal law requires improved benefits throughout the country, and there will be new limits on how much insurers can vary rates based on age, current health and medical history.
State leaders are trying to determine what role geography will play in the new insurance rates. Health insurers currently set their own rating regions, however the federal law allows states to establish their own map.
Our staff at Remland Insurance will strive to keep our customers as well informed as possible about the upcoming health insurance policy changes and rate increases. We greatly appreciate your business and look forward to serving your California insurance needs for many years to come.
Source: LA Times