SACRAMENTO, Calif.—Monthly premiums in California’s health insurance exchange will increase by more than 13 percent on average next year after two major insurers requested large rate increases, officials said Tuesday.
The increases are significantly higher than the 4 percent hikes in each of the last two years. They come as many other states report big premium spikes in the fourth year of President Barack Obama’s health overhaul.
Covered California sells health plans to about 1.4 million people who don’t get coverage from an employer or from the two large government-funded programs, Medicare and Medi-Cal. The exchange is a central piece of Obama’s health insurance overhaul, allowing people to compare policies and collect a subsidy to lower their monthly premiums if they qualify based on income.
