January 1 Rates to Increase But Still Good News for Most

Regardless of when your health insurance plan started, your plan renews on January 1st of every year.

That means that your rates will change on January 1st and will be good until December 31st. You can also change health plans starting on November 15th of every year for a January 1st start date.

Covered California just announced the new rates taking effect on January 1, 2015. Overall, the average rate increase is 4.2%. While many will see a small increase in premiums, others may see larger increases depending on where they live and the type of coverage purchased.

Changes in Coverred CA Rates











The Good News

If you receive a subsidy to help pay for your health insurance premiums, the good news is that the law sets a maximum for how much you have to pay for health insurance. When premiums increase, the amount of your subsidy increases.

Because of changes each year in the way subsidies are calculated, if your income remains the same, you will actually end up paying less in most cases if you are enrolled in Bronze or Silver plan. However, if you have a Gold or Platinum plan you may end up paying slightly more.

AUTHOR - Ali Nagy