Covered California Adds 12.4% Surcharge To Some Plans Because Administration Has Not Guaranteed ACA Subsidy Payments.

October 12, 2017


Kaiser Health News  (10/11, Terhune) reports that Covered California, the state’s ACA health exchange, announced on Wednesday that “it has ordered insurers to add a surcharge to certain policies next year because the Trump administration has yet to commit to paying a key set of consumer subsidies under the Affordable Care Act.” Officials explained that this move “to impose a 12.4 percent surcharge on silver-level health plans in 2018 means the total premium increase for them will average nearly 25 percent.” The piece says the federal government, not individual consumers, will pay for much of these increases through subsidies.

        CNBC  (10/11, Mangan) reports on its website that without the surcharge, “silver plans sold on Covered California...would have risen an average of just 12.5 percent next year, officials said as they revealed overall prices statewide.” For individual insurers, surcharges per plan will reach “anywhere from 8 percent to 27 percent.”

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