CHA News Article

Covered California Study Shows Premium Changes Under ACA

Covered California last week released an actuarial study it commissioned to examine the effect of the Affordable Care Act (ACA) on individuals who purchase their own health insurance. The report, Factors Affecting Individual Premium Rates in 2014 for California, finds that more than 2 million Californians who earn less than 400 percent of the federal poverty rate will benefit from the federal tax credits available through Covered California. Those individuals will pay between 47 and 85 percent less for their monthly premiums in 2014 than in 2013. The report also says people earning more than 400 percent of the federal poverty level will likely see premium increases averaging about 20 percent.

The study focuses on the individual market, highlighting the potential impacts of changes to health plan rates based on the age of consumers, showing that adults under the age of 25 may experience the highest rate increases – approximately 25 percent higher than the average increase for all ages– while older adults may see a rate increase 12 percent lower than the average increase for all ages. To read the complete report and FAQs about the report, or to view a chart of key data points, visit