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California Obamacare Rates to See Lowest Increase in 2021

Aug. 4, 2020, 5:00 PM

California’s Obamacare market, the largest in the U.S. with about 1.5 million enrollees, has negotiated its lowest rate increase yet for 2021.

The 0.6% increase will likely leave the state’s average monthly Affordable Care Act premiums at $895 per household before subsidies, and $281 after subsidies. About 90% of the state’s enrollees receive subsidies.

Health insurers throughout the U.S. have done well during the pandemic as the reduction in claims resulting from postponed non-emergency medical care has more than offset expenses for Covid-19. But pushing down premiums too much could result in a “roller coaster” of rate increases ...