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Covered California 2018 Final Rates Released

Covered California 2018 Final Rates Released

In July, Covered California announced proposed 2018 rates for the individual market.  The proposed rates included a statewide average rate change of 12.5 percent, as well as the potential for a separate surcharge related to the lack of federal funding for cost-sharing reductions (CSRs).  The surcharge averages an additional 12.4 percent on Silver products, with a range of 8 to 27 percent across carriers. 

As noted in previous emails, Covered California delayed the announcement of final rates pending ongoing federal policy discussions and the potential for Congressional action to fund CSRs.  However, today Covered California announced final rates for the 2018 plan year, and in the absence of a federal commitment to continue funding CSRs, Covered California plans will include the CSR surcharge on Silver-tier products for the upcoming year.  Attached is a press release with more information about today’s announcement.

With this announcement are some important items to note:

  1. Most Covered California consumers will be protected from the added surcharge due to rising federal premium subsidies.  Nearly four out of five Covered California consumers receive federal subsidies to help them pay their premiums.  Since the surcharge will only be applied to Silver-tier plans, the amount of federal subsidies eligible consumers receive will also rise.  This means that most consumers who receive these subsidies will not see a change in what they pay for their insurance as a result of the surcharge, and many may see the amount they pay toward their premium go down because their subsidy amount will increase more than the surcharge.  In 2018, nearly 60 percent of consumers eligible for subsidies will have access to Silver coverage for less than $100 per month – the same as in 2017 – and 74 percent can purchase Bronze coverage for less than $10 per month.   
  2. Covered California enrollees who do not receive subsidies will have plan options that do not include the surcharge.  Currently, Covered California has approximately 65,000 unsubsidized consumers enrolled in Silver plans.  These consumers can avoid paying the surcharge by switching to a different metal tier or purchasing a nearly identical Silver plan outside of Covered California that does not include the surcharge. 
  3. Shopping is really important and can help consumers keep their coverage affordable.  As with every renewal and open enrollment period, shopping is critical for consumers.  While the statewide average rate change for 2018 is 12.5 percent, many consumers can limit the rate change to 3.3 percent if they switch to the lowest-cost plan in their same metal tier.  Today’s announcement coincides with the launch of Covered California’s updated Shop and Compare tool which consumers can use to compare their coverage options for 2018.  Consumers will see the rates for the plans available to them in their area and find out if they qualify for financial assistance to help them pay for their coverage.  The Shop and Compare tool is available on our website at  

Given the ongoing federal uncertainty with regard to CSR funding, Covered California has worked to ensure a stable market that preserves consumer choice and protects as many consumers as possible from increasing premiums.  However, federal action to fund CSRs is needed to preserve market stability, ensure continued carrier participation, and keep premiums affordable.  It also will reduce the amount of money spent by the federal government on subsidies for premiums.   As federal policy discussions continue, Covered California will continue to respond to consumer needs and inform policy discussions based on our experiences and lessons learned.

The renewal period for Covered California enrollees begins today, an open enrollment for those who currently do not have coverage begins on November 1 through January 31, 2018.  Covered California will be working hard to ensure consumers are informed about their coverage options and financial assistance that may be available to them, and are here to help answer questions that they may have.  Consumers can also get local, free and confidential in-person enrollment assistance from one of over 14,000 certified agents and enrollers.  They can find local help by visiting

Written and orginally posted by Covered California

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