California Health Insurance Zones May Raise Premiums

Plans to divide California into six geographic individual plan markets on the state’s health insurance exchange would cause premiums in Los Angeles and the Bay Area to rise more than 20 percent, according to a report by the Los Angeles Times.

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Part of the reason for the rate spike results from new federal regulations for minimum benefits and limits on how much health insurance costs can vary based on age.

Alternatives to the six-zone plan include an 18-region plan coupled with an 8 percent cap on increases, according to the report. California Insurance Commissioner Dave Jones supports that proposal, but opposes a 19-region plan backed by health insurance groups that Jones said could raise some premiums as high as 25 percent.

More Articles on Health Insurance Rates:

HCA East Florida, Aetna Clash on Insurance Rates
Opposition Mounts Against Controversial California Insurance Rate Regulation Bill
Federal Regulators to Review Insurance Rates in 10 States

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