Rising California Health Insurance Rates: Limited Impact on Consumers

Premiums for health insurance sold through Covered California will increase by nearly 10% next year, the highest rate hike since 2018. However, about 90% of enrollees qualify for federal or state financial aid, shielding them from the increases. The rate hike reflects the return of runaway health care costs, driven by factors such as higher drug costs, increased doctor visits, labor shortages, and wage costs. The rate increases vary by region, with some areas potentially experiencing double-digit increases. Covered California has also eliminated deductibles for about 650,000 enrollees and reduced out-of-pocket copays for doctor visits and prescription drugs.