Covered California Silver Plan Surcharge

The decision to impose a 12 4 surcharge on silver level health plans in 2018 means the total premium increase for those policies will average nearly 25 according to covered california.

Covered california silver plan surcharge.

In 2018 anthem blue cross and healthnet are leaving some parts of the state. The covered california silver 70 plan offers a middle of the road option for people who want affordable health insurance as well as some good benefits. Covered california has touted that the average state wide rate increase for 2020 is a low 0 8. 11 consumers can use the shop and compare tool to find out their plan options and monthly premium price for 2018 coverage.

Is there any good news. Silver tier consumers who receive no subsidies will be encouraged to explore purchasing a different metal tier product in covered california none of which have prices that include the csr surcharge or consider buying a nearly identical silver plan offered outside covered california which would not have the csr surcharge. So potentially covered ca silver plan enrollees could experience an average 24 9 increase in their premiums. That s because four out of five silver policyholders get federal premium assistance a tax credit separate from the csrs that increases as their costs increase.

More often than not they provide the best bang for your buck the affordable monthly premiums mid size deductibles and discounted fees for commonly needed medical services make silver plans an attractive option for those who are trying to balance cost with benefits. The csr surcharge would be on all covered ca silver plans and would be in addition to the 2018 rate increase of 12 5. Covered california members will soon begin receiving renewal notices. California s insurance commissioner pointed the finger at the trump administration.

The average surcharge on rates is 12 4 but it will vary for each insurance company. 12 4 surcharge on silver plans october 11 2017 leave a comment covered california s popular silver tier products will see a 12 4 percent surcharge in 2018 the state health insurance exchange said. Covered california silver plans are a popular choice for many people. Members who do not qualify for any tax credits would be hit the hardest.

In the absence of a federal commitment to continue funding cost sharing reduction csr reimbursements through the upcoming year covered california health insurance companies will add a surcharge to silver tier products in 2018.