First, CA's Small Group Market premiums are increasing by just 1.5% in 2021 (the lowest average increase since the ACA passed)
Second, CA's Individual Market premiums are increasing by just 0.6% on average in 2021 (identical to the preliminary rate requests)
Third, that Open Enrollment technically already started back on October 1st...sort of.
The official launch of Open Enrollment in every state isn't until November 1st, but for the past couple of years California has allowed current enrollees already in their system to actively renew/re-enroll for the upcoming year starting on October 15th. This year, it turns out they quietly moved that date back even earlier--current enrollees have been able to re-enroll starting as early as October 1st! I don't recall them ever making a big public announcement about this; I sort of stumbled upon it by accident.
Back in early August, Covered California issued an extensive analysis of their upcoming 2021 individual market offerings, including the preliminary weighted average premium rate changes of just a 0.6% increase. Officially, this was just the average of the preliminary requests; the approved rates were presumably forthcoming at a later date.
Well, the 2021 Open Enrollment Period has technically already started in California...while new enrollees still have to wait until November 1st, current CoveredCA enrollees have apparently been able to re-enroll for 2021 since October 1st! (In previous years, CoveredCA opened up the renewal period starting on Oct. 15th)
There's a lot to unpack in this press release from Covered California:
Covered California Hits Record Enrollment, Providing Important Lessons for the Nation on Meeting Americans’ Health Care Needs During the Pandemic and Major Economic Downturn
Covered California’s investments in marketing and outreach, along with consumer-first polices, helped it reach a record enrollment of 1.53 million people.
The record enrollment was bolstered by 289,000 people who signed up for coverage during the COVID-19 special-enrollment period, including 21 percent who were previously uninsured and likely ineligible to enroll under federal rules.
That's roughly 61,000 Californians who were able to enroll in ACA exchange policies specifically due to CA having an open SEP (that is, no requirement of coverage loss/etc. to do so).
Covered California Opens New Paths to Coverage for Wildfire Victims and Those Who Lose Their Job or Income During the Pandemic and Recession
Covered California establishes a new special-enrollment period to benefit victims of the 500+ wildfires raging across the state.
In addition, Covered California announced new paths to coverage that will run through the end of 2020, for Californians who have lost employment or income due to the pandemic and resulting recession.
The moves come during ongoing uncertainty in the lives of Californians caused by the wildfires and the continuing fight against COVID-19.
More than 271,000 people have signed up for coverage through Covered California since the exchange’s initial announcement of a special-enrollment period in response to the pandemic.
La versión en español de este Comunicado puede ser descargada en este enlace.
California’s Efforts to Build on the Affordable Care Act Lead to a Record-Low Rate Change for the Second Consecutive Year
The preliminary rate change for California’s individual market will be 0.6 percent in 2021, which marks a record low for the second consecutive year and follows California’s reforms to build on and strengthen the Affordable Care Act.
Covered California’s increased enrollment, driven by state policies and significant investments in marketing and outreach, has resulted in California having one of the healthiest individual market consumer pools and lower costs for consumers.
The impact of COVID-19 on health plans’ costs has been less than anticipated as many people deferred or avoided health care services in 2020, and while those costs are rebounding, it now appears the pandemic will have little effect on the total costs of care in California’s individual market for 2020 and 2021.
All 11 health insurance companies will return to the market for 2021, and two carriers will expand their coverage areas, giving virtually all Californians a choice of two carriers and 88 percent the ability to choose from three carriers or more.
Covered California approved a $440 million budget for fiscal year 2020-21 that includes a $30 million increase in marketing investments and $13 million for additional customer service upgrades to meet the needs of consumers.
The increased spending, which represents a 16 percent increase over last year’s budget, comes amid continued uncertainty in the lives and livelihoods of Californians as public health officials fight against the spread of COVID-19.
The budget also calls for greater investments in information technology to improve efficiency, as well as increased efforts to help inform state and national policy on health care-related issues.
More than 209,000 people have signed up for coverage through Covered California since the exchange announced a special-enrollment period, which runs through the end of July, in response to the COVID-19 pandemic.
Statement from Peter V. Lee on Protecting Individuals from Discrimination Based on Categories Like Gender Identity and Sexual Orientation
SACRAMENTO, Calif. — Covered California Executive Director Peter V. Lee released the following statement following the federal administration’s June 12 rule that eliminates preexisting federal rules protecting individuals from discrimination based on categories like gender identity and sexual orientation:
“Covered California continues to make quality health care coverage more accessible and affordable to Californians of all ages, religions, abilities, sexual orientation, gender identities, races, ethnicities and national origins. We’ve built upon the Affordable Care Act’s landmark market reforms to ensure that no one can be turned away from coverage, and that once enrolled they would have access to affordable, high-quality care.
Covered California is announcing a special-enrollment period through April 30 to address concerns that many Californians remain unaware of the new financial help or the new state penalty.
Hmmmm....the Special Enrollment Period is interesting. HealthCare.Gov and some state exchanges did something like this in spring 2015 (the first year people had to actually pay the mandate penalty) and managed to get around 210,000 more enrollees nationally. Of course, the penalty for 2014 was only $95 or 1% of income at the time...now it's up to $695/person or 2.5% of household income, so it's a bigger deal.
When I last checked in on Covered California a couple of weeks ago, they still had two days left before their 2020 Open Enrollment deadline, and had managed to rack up 1.51 million on-exchange enrollments. This included 1.15 million renewals of existing enrollees, plus another 364,000 new enrollees.
I noted at the time that they had just barely beaten 2019's total with two days to go, and would have to add about 7,500 more to break 2018's total, and another 43,000 to beat 2017.
Well, they ended up in between the two, partly due to an overestimate of the renewal figure:
New California Policies Make Huge Difference, Increasing New Signups During Covered California’s Open Enrollment by 41 Percent
New Special-Enrollment Period Announced to Continue to Get Word Out on New Subsidies and Penalty
