Expected Health Insurance Price Increases in 2023 in California

Covered California recently announced an increase in health insurance prices for 2023. Continue reading for more information on the cause of the price increases and what this can mean for you.

Market Rate Change in CA

Enrollees in Covered California can expect to see a 6% increase in prices for health insurance in 2023. However, looking at the previous four years indicates an average insurance rate that is well below the national average at 2.3%. The total average includes the record-setting lows of 2020 and 2021.

  • 2020 Weighted Average: 0.8%
  • 2021 Weighted Average: 0.5%
  • 2022 Weighted Average: 1.8%
  • 2023 Weighted Average: 6%
  • Four-year average (2020-2023): 2.3%

Data has shown that this average rate change is still below the 10% national average of states that have preliminarily filed their rates.

However, keep in mind the 6% rate change average for 2023 is just that — an average. The specific rate change that may affect you can depend on your region. For example, region 11 — Fresno, Kings and Madera counties — are seeing no increase, while regions 1 and 13 are seeing a rate change in the double digits.

The Cause of Covered California’s Rate Change

Several factors could have influenced California’s rate change. Part of the reason could be due to the return of typical medical trends following the COVID-19 pandemic, as well as the uncertain decision regarding the end of the American Rescue Plan. Without the American Rescue plan extension, California citizens will receive less financial help, resulting in raised monthly insurance payments.

The reason Covered California increased prices modestly is due to the following factors:

Active Purchaser

Covered California is an active purchaser, meaning they work alongside carriers on behalf of the customer to provide the customer with the correct rates to fit their needs. Active purchasing can include regulation, negotiation and customer education to ensure they get a fair rate. Other states are not as involved with consumer decisions.

Healthy Consumer Pools

California is among one of the healthiest consumer pools in the nation. The most recent data has shown California had the second-lowest liability risk score in 2021. This is the eighth consecutive year indicating California is among the top five states for increased enrollment in health insurance. Covered California’s current enrollment stands at more than 1.7 million people.

Low Utilization Rates

In the past, California has seen lower-than-normal utilization rates. However, as medical trends seem to be returning to pre-pandemic levels, the increase of 4% from last year can be accounted for.

Switch and Save on Health Care Costs With Health for California

If the 6% increase in rates is financially intimidating, there is an option to switch plans. Switching to a cheaper plan can actually lower your rates by 5.8% on average.

Health for California offers several levels of plans that can fit any need. From minimal coverage to a Platinum plan, we have you covered. For more information on our services and insurance plans, request a quote.

Not sure how Obamacare affects your health care plans in California? Learn how the ACA works in California, including benefits, costs and enrollment.

Covered California is the Golden State’s official health exchange marketplace where individuals, families and small businesses can find high-quality, low-cost California government health insurance.

Learn about Obamacare income guidelines in California using our income limits chart, and see if you’re eligible for government assistance.

Learn about the Covered California website. Find easy online enrollment. Set up your account, log in, buy insurance and more on the California health marketplace website.