California works to combat Trump’s undermining of the ACA
News: 2017 Press Release
The California Department of Insurance and the Department of Managed Health Care have posted on their websites both sets of the proposed rates submitted by individual market carriers and the departments are reviewing the rates to make determinations of reasonableness. State regulators lack the authority to prevent excessive rate increases.
"Thanks to the actions of President Trump, in April I took the unprecedented step authorizing health insurers to file two sets of rates for 2018," said Insurance Commissioner Dave Jones. "We in California are doing everything we can to keep carriers and plans in the individual market, but President Trump continues to undermine the ACA and as these rate filings demonstrate, California is not immune to his efforts to wreck the Affordable Care Act. If President Trump continues down this path, premiums will increase substantially in 2018. The average premium increase doubles if Trump continues to refuse to fund the cost-sharing assistance in the ACA."
Covered California announced today that Anthem will be exiting multiple regions of the individual market in California in 2018, though coverage for consumers in those areas will remain in place through December 31 of this year. Though Anthem is decreasing the number of areas in which it will sell products through Covered California, the California Department of Insurance was successful in keeping Health Net in the market and expanding its product offerings by offering a new PPO in many of the same regions in which Anthem is exiting.
"Insurance companies have had to make decisions about health insurance premiums and market participation for 2018 under the cloud of President Trump's actions undermining the Affordable Care Act, including his threat to withhold the ACA funding that reduces deductibles and co-pays for millions of Americans. It is good news that Health Net will be offering a new PPO product through Covered California in many of the same regions from which Anthem is exiting the market. Californians throughout the state will continue to be able to buy health insurance through Covered California, where most consumers are eligible for a premium subsidy," continued Jones.
- Rate filings submitted to the California Department of Insurance are available to the public.
- Commissioner Jones wrote to Majority Leader Kevin McCarthy and Senator Alexander last January to explain not only why repeal of the ACA would be devastating to the millions of Americans who have benefited from the ACA, but that failure to set the rules for the health insurance market for 2018 in early 2017 would create instability that would likely result in significant premium increases or even exit from the market by some insurers.
- More recently, Commissioner Jones wrote to President Trump, Speaker Paul Ryan and Majority Leader Kevin McCarthy about how their actions and failures to act are harming the 2018 health insurance markets.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $289 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $394 million in claims and premiums. Please visit the Department of Insurance web site at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.HELP or 213.897.8921. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.