TAKING THE PAIN OUT OF HEALTH INSURANCE

Big Covered California Changes Coming in 2020 to Help The Middle Class!


Sep 30, 2019

​In an effort to reduce the cost of health insurance for consumers and increase enrollment rates throughout the state, the Governor and Legislature enacted initiatives designed to bring quality health care within reach of a larger demographic through Covered California. Though bold, estimates suggest that the new initiatives will save California residents hundreds of millions of dollars in monthly premiums and ensure that middle class individuals have access to financial assistance. It is hoped that by lowering the cost of health care for Californians, small businesses will be able to expand, hire more personnel, buy new equipment and realize their full potential. 




​A Look at the New Covered California


Californians can anticipate a number of exciting changes for health care in 2020. Below is a brief overview of what you can expect in terms of rates, mandates, financial assistance and more:


  • Low Opening Rate Change: The rate change in 2020 is set to be the lowest rate change since Covered California's launch back in 2014, at just 0.8%. For reference, the average increase over the past five years has been 7.9%. The hope is that by keeping costs low in spite of inflation, more individuals will be able to afford coverage.

 

  • Expansion of Financial Help: Under these new initiatives, California will be the first state in the nation to provide state subsidies to middle-income individuals. Households earning less than $74,940 for one person or $101,490 for two person household will qualify for a covered California health insurance subsidy. A quick analysis projects that state financial assistance, in addition to federal subsidies, will help an additional 922,000 Californians afford health insurance. An estimated 235,000 of those individuals will be middle class who did not previously qualify for financial assistance. Another 663,000 or so Californians who currently receive federal financial help will also be eligible for an average of an additional $15 savings on monthly premiums thanks to the state subsidy. 

  • Individual Mandate Reinstated: Congress zeroed out the individual mandate penalty of the Affordable Care Act, a move that only served to increase premiums and reduce the number of health care enrollees. Covered California of 2020 restores the mandated penalty, a move the state anticipates will reduce premiums by as much as between 2% and 5% per carrier. This change will save consumers an average of $14 per month, or $167 per year.

 
In addition to the aforementioned changes, all 11 carriers plan to return to the California health insurance marketplace. The major national carrier, 
Anthem Blue Cross, also plans to expand, which ensures that all Californians have their choice of at least two carriers, while many will have their choice of three or more.

 
Open Enrollment Is Almost Here

 
If you're like many consumers, you may want to know how these changes will translate to cost savings for you and, more importantly, how much you can anticipate to save. When open enrollment 2020 arrives on October 15, 2019, you can begin shopping for coverage. Make sure to contact Sackett & Associates Insurance Services to shop and compare various plans and pricing. You can see if you qualify for financial assistance through the federal government, the state or both.
 
For more information on the new initiatives and how it will benefit you, reach out to Sackett & Associates Insurance Services. You can also 
request a free quote for individual and group coverage. 


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