Covered California CEO Urges Consumers To Shop Around

Concerned about looming premium increases for 2017, Covered California Chief Executive Peter V. Lee has asked the 1.3 million participants in the state's insurance exchange to shop around for their coverage.

The announcement comes on the heels of Covered California announcing during the summer that the average premium increase for next year would be 13.2%, up from an average uptick of 4% the prior two years. The increases reflect large increases at state health insurance exchanges nationwide, prompting the Obama administration to recently lower deductibles on some plans offered through the exchanges.

“Most of those renewing with us get subsidies that mean they are paying only a portion of the premium,” Lee said. “But even without considering the subsidy, nearly 80% of our consumers will either be able to pay less than they are paying now for health insurance, or see their rates go up by no more than 5% if they shop and switch to another plan.”

Covered California has goosed some of its online shopping features for consumers, boosting the number of plans that can be compared simultaneously from four to 12 and offering more plan filters.

Exchange officials did not predict how many of its 1.3 million enrollees may switch from their current plans to other forms of coverage.