First off, can you believe we are talking about 2020 already? Open enrollment for the individual market is only a few months out. We've got great news for those looking to shop there: CoveredCA is reporting a 1% increase across their entire selection of plans.
The previous 6 years, we have seen increases ranging from 6% to 11%. So this is a major win for the individual market seeing such a low increase.
At first glance, you may think this tiny increase is a result of the health insurance marketplace balancing itself out. However, there is more to it. California has implemented the individual mandate for 2020 meaning all Californians need to have health insurance for pay a fine. We are expecting an increase of healthy people signing up in 2020 to avoid the penalty. Furthermore, all those penalties are going to go towards CoveredCA's costs.
On top of the individual mandate's return, California received a load of subsides from the government that will help cover the costs for lower income families enrolling on CoveredCA. These subsidies are coming from the federal government via the Affordable Care Act.
So there you have it... a big win for those buying health insurance at CoveredCA.com