State officials announced today (Tuesday) that insurance premiums for the 1.5 million Californians who purchase coverage through the state marketplace will go up an average of 0.6% next year.
It is the smallest rate increase that’s attributed in part to a surge of new signups during the coronavirus pandemic.
Federal law, signed by President Barack Obama, allows people who don’t have health insurance provided by their job to buy coverage from a marketplace. Most states let the federal government run their marketplace. But California runs a separate marketplace called Covered California for its residents.
Premiums average about $587 a month for an individual. But about 90% of the people who buy coverage through Covered California receive state and federal subsidies of about $450 per month, lowering their premium to about $137 per month.
