New California Health Rates And Plans Expected Summer Of 2013

Submitted by: Dennis Jarvis

It’s the beginning of May, 2013 and we’re getting closer by the day to the full ramp up to Health Reform and “H Day” of Jan 1st 2014. Okay, so the H Day name hasn’t caught on yet but the dates are important none the less. The next big piece of information to drop will come smack in the middle of summer and it’s the real question mark to this whole roll out. The carriers have scheduled to release the new health plan benefit summaries and rates at that time and everything hinges on that information. Let’s look at what to expect and how to best prepare as California individuals, families, and companies.

Road hits pavement summer of 2013

We’ve been warning of news related to expected rates coming Jan 1st for most Californians but until we see the actual numbers, it’s all just speculation (even if educated speculation). This is what we expect based on multiple accounts and sources. For individuals and families, the rates and benefits might be quite different. The expected rate difference (we won’t call it an increase since the benefits are different) will be likely be 30-60% depending on a few factors. All rates will go up but not equally. Younger adults are likely to absorb the greatest increase due to the 3-1 age band compression which we’ve discussed is a separate articles. We can expect “younger” to range up to about 40-45 years old. Older adults not eligible for Medicare (age 45-64) will likely see the lower range of this rate differences (say 30%) as they benefit from the rate compression. Some Californians (up to 400% of Federal Poverty Level) may be eligible for health premium subsidies which will offset the premiums significantly.

What about plan benefits?

Keep in mind that we’re comparing what people are paying now to what they will like pay then. California has already released the essential plan benefits and although the carriers may offer slightly different versions, they can’t differ to much and still hit the actuarial level. The Platinum and Gold plans are so rich in benefits that we don’t see many people choosing these plans as the costs will be astronomical. The California Silver health plan is still very rich compared to today’s health plans so we also don’t expect as much activity here other than the Exchange (people who qualify for a subsidy). For people that don’t qualify for a subsidy, this basically leaves the Bronze health plan which is where we see 80% of the market going due to cost. It just won’t make sense to go up the scale in terms of plan benefits when considering cost difference. So we have Silver in the Exchange and Bronze off the Exchange (individuals under age 30 will also have a catastrophic health plan option). You can see the core benefits already here.

What about California group health insurance?

Group health plans will likely not see such an extreme premium difference as the individual/family market. The California group health market has already incorporated many of the mandates which are new to the Individual market such as maternity, mental health parity (California State law), etc. We expect rates to increase about 15% in California although the plan choice may affect this since many groups have opted for higher deductible options which may not directly correlate with the 4 plans available as part of Health Reform.

As soon as we get the new rates, we’ll make sure to notify our clients and Facebook followers so they can see what to expect. In the meantime, keep your fingers crossed!

About the Author: Dennis Jarvis is a licensed

California health insurance quote

agent with extensive knowledge of the Individual California health market.

2013 California Exchange Rates Expected Summer 2013

Source:

isnare.com

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