When to buy health insurance in California
Health insurance premiums are expected to jump from their current level in the coming weeks.
That will force some consumers to shop around, according to a new report from NerdWallet.
The state of California has been grappling with the fallout from its deadly coronavirus outbreak and rising costs, as well as rising premiums for insurance.
A new report published by NerdWallet says consumers will see their premiums rise by an average of 2.9 percent next year.
Insurance companies have responded to the rise by cutting back on coverage and increasing deductibles.
But that could make it more difficult for consumers to pay the premium increases.
The report found that average annual medical expenses for a typical California family will rise by $3,200.
The average family will see a 4.5 percent increase in out-of-pocket medical costs.
The average increase in COVID-19 costs for a family of four is $8,100.
The cost of insurance premiums in the state will also increase, due to rising costs.
The median premium for a single adult will rise from $4,500 in the spring to $6,500 this year, according a NerdWallet analysis.
The increase in premiums could mean people won’t be able to afford health insurance and won’t shop around for a plan.
This could mean a larger number of people will end up with higher medical costs because of the increased costs.
“Insurance is not cheap in California.
If you’re not getting a good rate, you can be left behind by a higher rate,” said Krista Loehr, a senior analyst with NerdWallet who co-authored the report.
Insurers and companies are already scrambling to lower their rates for the coming year, as they struggle to keep up with the cost of covering the growing number of new patients.
The new numbers will mean fewer people will be able buy coverage, and consumers will face higher out- of pocket costs.
Insurer Aetna has cut its premiums for 2017 to $1,400, down from $2,000.
Anthem, UnitedHealthcare and UnitedHealth BlueCross BlueShield are all reducing their rates to $2 in 2018.
Newer plans from the BlueCross, Humana, Cigna, Blue Shield of California and Blue Shield Health plans are also increasing premiums in 2018, the report found.
NerdWallet estimated that the average annual cost of health insurance would increase by $4.7 billion, or 7.7 percent.
That means the average family would have an additional $637 in annual medical costs in 2018 due to the new COVID pandemic.
If the average premiums for people purchasing a COVID plan next year remain in the same range as this year’s, the total amount of money insurers are saving on COVID costs would increase to $3.6 trillion.
The NerdWallet report also found that the cost per person for individual health insurance is expected to increase by 2.7 percentage points in 2018 to $23,800.
That’s an increase of almost $200 per person.