CHA News Article

Report Examines California Health Insurers Two Years Post-ACA

The California HealthCare Foundation (CHCF) has released a reportCalifornia Health Insurers: Two Years After Reform, that provides a snapshot of the insurance market in California at the end of 2015. Dramatic expansion of coverage under the Affordable Care Act (ACA) in 2014 and 2015 brought more enrollment and premium dollars to California’s insurers. Data from the Department of Managed Health Care, the California Department of Insurance and other sources were used to examine market share; enrollment; financial performance, including medial loss ratios; and consumer satisfaction.

Key report findings include:

  • California health insurance was a $162.5 billion business in 2015, up 32 percent from $122.9 in 2013. Six insurers accounted for more than two-thirds of the revenue, and most insurers operated in the black.
  • Enrollment in individual and in Medi-Cal and other public managed care plans surged in 2014 and 2015 with the rollout of major ACA provisions. During this two-year period, individual enrollment increased by 58 percent (858,000) to 2.3 million while enrollment in Medi-Cal and other public managed care plans increased by 52 percent (3.5 million) to 10.3 million. The report notes that, because these figures are based on reporting to regulators, they differ from the Department of Health Care Services’ estimates.
  • In 2015, enrollment in Medi-Cal and other public managed care plans surpassed large group enrollment, formerly the biggest health insurance market.
  • L.A. Care, the state’s largest county-based insurer, more than doubled its revenues during the two-year period, and vaulted into the ranks of the six largest insurers, exemplifying the growth in Medi-Cal insurers.