One question that many people are pondering today is whether Covered California insurance rates will be higher than current policy rates. As of now, there is no straightforward answer to this question.
A comparison of policy rates on the small business market in California revealed little increase (2%) in the cost of Covered California policies as compared to average current rates. This minor increase included the extra medical coverage required of health insurance companies under the Affordable Care Act (ACA), like medical prescriptions, doctor visits and hospital stays. Some predictions even calculate a drop in insurance rates once the ACA is activated in 2014.
There are several reasons why lower rates are being predicted for Covered California policies. Covered California has made great strides in strengthening its relationship with insurance providers to keep premiums at reasonable rates. Insurers are also experiencing a reduction in administrative costs, the savings of which can be passed on to consumers in the form of reduced premium prices.
For more information about health insurance costs and benefits in the Los Angeles, California, area, contact Save-On Insurance Services.
