SACRAMENTO (CBSLA) – People who get their health insurance through Covered California, the state’s health insurance marketplace, will likely see premiums increase by an average rate of only 0.8 percent in 2020, officials announced Tuesday.
Covered California reports that the low rate is thanks to new state subsidies and the recent passage of a statewide individual mandate.
The California Legislature last month approved a bill which brings back the individual mandate that takes effect next year and institutes a tax penalty for those who don’t buy health insurance.
Premiums have increased by an average of 7.9 percent since 2014, according to Covered California.
2.2 million people currently use Covered California, which estimates that by next year another 229,000 will join thanks to the stabilized rate increase and the individual mandate.
“The bold moves by Gov. Newsom and the Legislature will save Californians hundreds of millions of dollars in premiums and provide new financial assistance to middle-income Californians, which will help people get covered and stay covered,” said Covered California Executive Director Peter V. Lee in a statement. “California is building on the success of the Affordable Care Act and bringing quality care and coverage within reach for more people.”