Premiums for health insurance plans sold through the state’s marketplace will increase by an average of 6% next year — the largest rate hike since 2019, Covered California officials announced Tuesday. The uptick is mostly due to people resuming doctor visits and procedures postponed during the pandemic; rising inflation rates; and the potential loss of federal subsidies set to expire at the end of the year, CalMatters’ Ana B. Ibarra reports.
Covered California has estimated that if the federal government doesn’t renew those subsidies, approximately 1 million of the 1.7 million Californians who buy their coverage through the state marketplace will see their premiums double and 220,000 would likely drop their coverage — pushing premiums up even more. The state will spend $304 million to reduce Covered California premiums if Congress doesn’t renew the aid, but that won’t come close to replacing the $1.7 billion in annual federal subsidies, said Jessica Altman, Covered California’s executive director.
The news comes as California seeks to simultaneously expand access to health care while driving down costs.
- The state on July 1 increased the asset limit that had previously restricted some older and disabled Californians from qualifying for Medi-Cal, the state’s health insurance program for the poor. Previously, residents couldn’t have more than $2,000 in the bank. The maximum for an individual is now $130,000, plus an additional $65,000 for each household member; the asset limit is set to be eliminated entirely on Jan. 1, 2024.
- It’s expanding Medi-Cal access to all income-eligible residents, regardless of immigration status.
- It’s launching a new Office of Health Care Affordability to slow the rate of growth of health care costs.
- It’s working to develop its own low-cost insulin.
—Emily Hoeven, CALMatters
A win for YIGBYs
In other state news, among the stack of bills Gov. Gavin Newsom signed into law Tuesday was a win for the “Yes in God’s Backyard” movement, which has been pushing state lawmakers to allow churches and other religious institutions to build affordable housing on their land in an attempt to mitigate California’s housing crisis.
The bill from Democratic Assemblymember Buffy Wicks of Oakland permits developers of new churches to slash the number of required parking spaces in half if they also build housing. “Excited to see the new homes they build! #YIGBY,” Wicks tweeted.
However, another YIGBY bill from Democratic state Sen. Scott Wiener of San Francisco, which would have made it easier for religious organizations to build housing by removing local zoning restrictions, appears to have stalled for the year. Wiener shelved a similar bill in 2020 amid opposition from the state’s powerful union of construction workers, which argued it didn’t contain enough job protections. Wiener is expected to reintroduce the bill in December, ahead of the start of the next legislative session.
—Emily Hoeven, CALMatters
