Covered CA predicts 2019 increases

On Thursday May 17th Covered CA released estimates of the individual health plan premium increases for 2019.  The organization estimates that premiums will increase by 11%, while enrollment in the exchange will drop by 12%.  For 2018 increases were, on average 12.5%.

With the elimination of the federal requirement to buy health insurance starting in 2019, some of the healthy population is expected to drop or not renew their coverage.  This will mean that the pool of insured people may be “sicker” while the premium revenue shrinks.  Carriers will be paying higher claims per person with less revenue per person.  This combination is likely to increase costs at a faster pace for 2020 and beyond.

The final rates for 2019 won’t be released until July.

May 29th, 2018 by RealCare Insurance Marketing, Inc.