Eligible California Small Business Announces Weighted Average Rate Change of 7.1% for 2023

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October 26, 2022 – Sacramento, CA — Covered California for Small Business announced health insurance options and rates for small business employers and their employees. The next planned year of 2023. The statewide weighted average rate change was 7.1%, which is in line with the forecast for large employers nationwide.

“Coveralifornia for Small Business continues to grow, providing employers with healthcare choices and quality coverage options.” Jessica Altman, Executive Director of Covered California, said: “By offering our employees competitive rates and a wide range of options, we are committed to making it easier than ever to manage employer-provided insurance.”

A record 78,378 individuals are insured through Covered California for Small Business (CCSB), representing an increase of 11.5% or nearly 8,100 from this time last year. CCSB is now on its eighth consecutive year of membership growth at his double-digit rate.

The 7.1% rate change this year is relatively in line with the 6.5% increase the National Business Group on Health projects for large employers nationwide.¹ Similar to what Covered California is seeing in the state’s individual markets, after several years of low interest rate volatility, premium growth this year is driven by a recovery in pre-pandemic medical trends (Table 1: See Covered California for Small Business). year-to-year average rate of change).

Like many large employers, CCSB offers unique plan and career options within the small group market, giving both employers and employees more flexibility to maintain coverage that meets their needs.

“California is seeing record registrations for small businesses, which proves that we meet the coverage needs of small businesses.” Altman said“Continued growth, combined with the 1.7 million people Covered California enrolled in the private market, shows how the Affordable Care Act is performing in California.”

Table 1: Change in Average Rates by Year for Eligible California Small Businesses

Eligible California small businesses will offer three statewide plans in 2023. This includes his one Preferred Provider Organization (PPO) plan in Blue Shield, California, and two provider- and hospital-based Health Maintenance Organization (HMO) plans. blue shield.

The 2023 health plan portfolio also includes Sharp Health Plans in San Diego County and Blue Shield, which provides HMO plans to residents of Fresno, Kings, and Madera counties.

“For many small businesses, Covered California for Small Business coverage is the only way they can provide their employees with high-quality, affordable healthcare.” Bianca Bronquist, California Policy Director for the Small Business Majority said: “California small businesses are still navigating a highly competitive job market and fighting for quality talent with limited resources. A strong and affordable market is essential for the sustainable growth and equitable small business recovery of small businesses. ”

One carrier, Health Net, will no longer offer plans through Covered California for Small Business after January 2023. The approximately 1,900 members currently enrolled in the Health Net PPO Plan will automatically renew to his CCSB Plan, which most closely reflects the design of the current 2022 Plan. .

Similar to Covered California’s individual market, consumers may be able to limit rate increases or even save on premiums by shopping at the same metal tier and switching to a lower-cost plan. .

Businesses with up to 100 full-time equivalent employees can apply for employee health insurance through Covered California for Small Business. Federal tax credits may be available to employers with 25 or fewer employees than her. For information on how to apply, please visit www.CoveredCA.com/forsmallbusiness/.

The Family Dental Plan is optional and offered by California Dental Network, Delta Dental of California, Dental Health Services.

About Covered California

Covered California is the state’s Affordable Care Act marketplace, enabling Californians to find affordable, quality health insurance from name brands. It’s the only place where eligible individuals can get sliding financial assistance to reduce their monthly costs. Depending on their income, some consumers may qualify for her Medi-Cal program for free or low fees.

Covered California is an independent part of the state government and is overseen by a five-person commission appointed by the Governor and Congress to help increase California’s insured population, improve the quality of health care, and reduce costs. , whose mission is to reduce healthcare disparities. For more information on Covered California, please visit www.CoveredCA.com.

¹ National Business Group on Health, 2023 Large Enterprise Healthcare Strategy and Plan Design Survey.
Source: Subject CA.