Health of Californians Enrolled Is a Key Indicator of the Individual Insurance Market’s Stability and Success

Covered California logoA new analysis shows that California continues to benefit from attracting a healthy mix of enrollees to its individual insurance market through significant investments made by Covered California in marketing
and outreach. These investments have resulted in more-stable rates and enrollment. The health of California’s consumers is a critical element of the state’s overall stability and will play a significant role in informing Covered California’s rate negotiations for 2019, which determine the prices consumers will pay regardless of their receiving subsidies.

“A healthy pool of consumers is the foundation of the stability of California’s individual insurance market because healthier consumers mean lower premiums for everyone, which helps promote more enrollment,” said Peter V. Lee, executive director of Covered California. “From the start, Covered California has focused on enrolling a healthy mix of consumers, and this analysis provides new evidence that investing in promoting enrollment is essential and pays off in the form of reduced premiums for those who do not receive subsidies.”

The study, titled “National vs. California Comparison: Detailed Data Help Explain the Risk Differences Which Drive Covered California’s Success,” was posted today on Health Affairs, a prominent website devoted to health policy and issues affecting health and health care. The analysis was conducted by Wakely, a nationally recognized health care actuarial consulting firm, along with Covered California’s chief actuary, John Bertko. (read more)