California s insurance commissioner pointed the finger at the trump administration.
Covered california silver plan surcharge.
Covered california members will soon begin receiving renewal notices.
Covered california silver plans are a popular choice for many people.
In the absence of a federal commitment to continue funding cost sharing reduction csr reimbursements through the upcoming year covered california health insurance companies will add a surcharge to silver tier products in 2018.
Covered california expects most policyholders facing the surcharge won t pay more.
12 4 surcharge on silver plans october 11 2017 leave a comment covered california s popular silver tier products will see a 12 4 percent surcharge in 2018 the state health insurance exchange said.
The covered california silver 70 plan offers a middle of the road option for people who want affordable health insurance as well as some good benefits.
That s because four out of five silver policyholders get federal premium assistance a tax credit separate from the csrs that increases as their costs increase.
Under this plan popular services like office visits generic drugs x rays and labs are covered at a flat fee copay.
Silver tier consumers who receive no subsidies will be encouraged to explore purchasing a different metal tier product in covered california none of which have prices that include the csr surcharge or consider buying a nearly identical silver plan offered outside covered california which would not have the csr surcharge.
More often than not they provide the best bang for your buck the affordable monthly premiums mid size deductibles and discounted fees for commonly needed medical services make silver plans an attractive option for those who are trying to balance cost with benefits.
Is there any good news.
In 2018 anthem blue cross and healthnet are leaving some parts of the state.
The average surcharge on rates is 12 4 but it will vary for each insurance company.
Covered california has touted that the average state wide rate increase for 2020 is a low 0 8.
The decision to impose a 12 4 surcharge on silver level health plans in 2018 means the total premium increase for those policies will average nearly 25 according to covered california.
What they failed to mention was that the deductibles for the silver 70 and enhanced silver plans 73 and 87 were increased between 60 to 115 over 2019 plans.
Members who do not qualify for any tax credits would be hit the hardest.
