This Monday, health care rates for 2016 were announced for Covered California, the California health care exchange set up as part of the Affordable Care Act. Overall, the projected rate increases are a mixed bag. While the statewide average increase is only modest, certain regions of the Golden state--particularly in Northern California--may see double-digit increases in their health insurance rates.
4% Average Rate Hike for Californians Enrolled in Obamacare
The overall average rate hike for Covered California is 4% flat, making the increase largely consistent with the 4.2% hike in 2015. Proponents of the Affordable Care Act are using this as evidence that Obamacare will not neccesarily drive up health insurance rates as feared.
Rates by Region
Unfortunately for residents of Northern California, rate hikes for the coming year are not uniform across the state. While Southern California is seeing a rate hike of only 1.8%, Northern California has to deal with increases of 7%.
Within smaller regions, there is even more variability in the increase that individuals in different areas will face. For example, Northeastern Los Angeles County will see a decrease in rates of .2%, while "Pricing Region 13", including Mono, Inyo, and Imiperial Counties will see a decrease of half of a percent. By contrast, "Pricing Region 1", which includes the northernmost counties, will see an increase of 10.6%. (Find data on rate hikes in your area in the official Covered California release, here).
The administration of Covered California attributes the variability in rates to different levels of competition in Northern and Southern California. In the south of the state, hospitals and doctors' groups are prevalent, making for a lot of competition. In the Bay Area, where hospitals are also plentiful, hikes are only 3.4%.
Peter Lee, executive director of Covered California, stated, ""Health care is local, and provider competition based on where you live is the key driver of underlying costs."
New Health Care Providers in the Exchange
In 2016, Covered California welcomes two new health insurance companies: UnitedHealth and Oscar, a New-York-based start-up.
In 2016, the exchange will offer plans through Anthem Blue Cross, Blue Shield of California, Chinese Community Health Plan (CCHP), Health Net, Kaiser Permanente, L.A. Care, Molina Healthcare, Oscar, Sharp Health Plan, UnitedHealthCare, Valley Health Plan, and Western Health Advantage. (For more information on the plans and availability in your area, look here.)
Deadlines to Sign up for Obamacare in 2016
Open enrollment for the Affordable Care Act will run from November 1, 2015 until January 31, 2016. The fee for not having coverage in 2016 will be higher than last year's fee.
As you begin to look around for a plan that suits your budget and needs, you may be wondering how these plans will cover your sleep-related treatment, like a sleep study or PAP equipment. Read our article on How Obamacare Treats Sleep Apnea or our Insurance FAQ for more information.
How do you feel about the 2016 rate hikes and the rising cost of health care? Share in the comments.
Sources:
"Health Insurance Companies and Plan Rates for 2016." Covered California.
Seipel, Tracy. "Bay Area Residents will see higher Covered California premiums in 2016." San Jose Mercury News.
Photo Credit: 401(k) 2012. "Health Care Costs." Creative Commons License.
