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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Study: Some Calif. Health Premiums To Rise

The study by the Milliman consulting firm did not look at the impact of federal health care overhaul on costs for most adults who receive coverage through their employer. Instead, it analyzed how the federal law would impact individual premium rates next year.

Covered California is hoping the study will guide health insurers in pricing their plans as the companies submit bids to sell on the state's insurance marketplace. The exchange, as it's called, launches Oct. 1.

The report estimated that extending coverage to the uninsured will result in a 26.5 percent average increase for individual plan premiums. However, the report said much of that increase will be offset by other factors, such as special payments to insurers to attract an outsize share of the sick, and the price-cutting effect of competition and more effective contracting.

Premium prices will vary greatly depending on an individual's age, income and where they live. For example, a person earning less than $28,725, or 250 percent of federal poverty level, will see rates drop an average of 85 percent because they will be eligible for larger tax credits.

A person earning between $28,725 and $45,960, or between 250 percent and 400 percent of federal poverty level, will pay an average of 45 percent less due to partial subsidies.

Individuals making more than $45,960 would likely see an average premium increase of 30 percent because they won't receive any subsidies.

Larry Levitt, a private health insurance expert with the nonprofit Kaiser Family Foundation, which analyzes health policy issues, said the projections illustrate flaws in the current individual insurance market system. He said rates are misleadingly low because people who are sick or have pre-existing conditions are excluded from medical underwriting.

"You may be paying a low premium because you're healthy but there's no guarantee that if you get sick, that that premium is going to stay low," Levitt said. "By fixing the market, people are getting more security and stability in their coverage over time."

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,539.46 -23.84 -0.14%
S&P 500 1,929.04 -1.63 -0.08%
NASDAQ 4,360.3590 -9.4140 -0.22%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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