This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Study: Some Calif. Health Premiums To Rise

By JUDY LIN

SACRAMENTO, Calif. (AP) â¿¿ Californians who buy individual health plans will see their premiums increase an average of 14 percent next year under the Affordable Care Act, but payments will largely depend on income, age and where they live, according to a new report released Thursday by California's health care exchange.

The report commissioned by Covered California found the increase is largely due to an influx of people who previously could not afford health insurance or were denied coverage because of pre-existing conditions.

While premiums will go up, exchange director Peter Lee said the small group of people will get better health plans that won't bankrupt them if they become ill.

About 2 million Californians purchase individual plans, which represents a small portion of the state's 38 million people. Those people lack employer health coverage and tend to earn too much to qualify for public health programs.

They can include independent contractors, self-employed individuals such as attorneys or florists, and small business owners.

"What we have as of Jan. 1, 2014, is real insurance that can provide the protection for the first time that all Californians that buy coverage through the individual market will know they will never go bankrupt," Lee said in a conference call with reporters. "That's a game changer."

Lee said one of the exchange's challenges will be to communicate changes coming under the federal health care overhaul. Even though premiums may go up, Californians will receive more benefits to offset the costs, such as guaranteed coverage, limits on out-of-pocket expenses, and comprehensive medical coverage to protect them when they need it.

The report estimates that rates in California would rise 9 percent in 2014 without federal changes. California, which is ahead of most states in planning an insurance exchange, is expected to be a trendsetter on rates.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs