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Uncovered California: Insurance Costs To Skyrocket in 2018

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Author: Jeff Powers
Created: 01 August, 2017
Updated: 21 November, 2022
1 min read

Perhaps the California legislature knew this was coming, as they attempted in vein to introduce a single-payer health care system in the Golden State.

Covered California’s health insurance exchange announced Tuesday that rates will jump on average 12.5 percent. And that is only if the subsidies continue.

Ten percent of people enrolled through Covered California will also have to look for a new plan, as Anthem Blue Cross announced plans to end its coverage in most of the state.

The Subsidy War

The ACA's subsidies are available to any legal California resident earning between 139 percent and 400 percent of the federal poverty level. Roughly 700,000 Californians receive those extra subsidies.

President Trump has tweeted that he is ready to remove those insurance subsidies after the U.S. Senate failed to pass a "skinny" repeal of Obamacare Friday.

https://twitter.com/realDonaldTrump/status/891334415347060736

If that happens, premiums could soar because health insurers would have to pick up those costs themselves. Many companies like Anthem Blue Cross would also likely flee the markets.

Covered California Region Pricing

The largest percentage 2018 increases will be seen in the highest populated cities. Here is a breakdown of San Francisco, San Diego and Los Angeles Counties.

Photo Credit: Niyazz / shutterstock.com

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