How the Covered California Rate Increase May Affect You
There has been lots of news lately about the Rate Increase taking place in 2017 with regards to Covered California (Obamacare). Unfortunately, these uprates are going to hit consumers harder than many are expecting. Covered California has announced an average of 14% increase to rates next year, but what many don’t realize is this increase could double your out of pocket premium. Let me explain.
(This is a Fictional example and John is not a real person)
Let’s say John has a Covered California policy that covers his family of 4. He pays $200 in out of pocket premiums per month. Although the entire premium of the Policy is $1000 per month, John is receiving an $800 monthly subsidy from Covered California. If his policy goes up the 14% as reported in 2017, his overall premium will now be $1140 per month. There is a possibility his subsidy is going to stay the same at $800 per month, and it will fall on John to cover the ENTIRE UPRATE. Due to this 14% increase, His out of pocket monthly premium will now be $340 a 70% increase.
So even though Covered California is claiming one thing, in all actuality this increase will affect the insured much more severely than is being advertized.
As always, Palmer Insurance & Income Tax is here to help guide you through the murky waters that is Covered California. With updates to income and a reevaluation of coverage often times we are able to keep your premium Similar to what you have been previously paying. Give us a call or click “contact us” above with any questions or comments you may have.