Defying an industry trend of double-digit rate hikes, California officials said the more than 1.2 million consumers in the state-run Obamacare insurance exchange can expect modest price increases of 4.2% on average next year.
….”We have changed the trend in healthcare costs,” said Peter Lee, Covered California’s executive director. “This is good news for Californians.”….State officials and insurers credited the strong turnout during the first six-month enrollment window that ended in April for helping to keep 2015 rates in check.
It’s still early days for Obamacare, and it’s not yet clear if it deserves credit for keeping California’s rate hikes low. It may instead be due to the recent slow growth of medical costs nationally. Nonetheless, this is a very positive sign. California is a big market, and it’s one that’s traditionally seen steep rate hikes in the individual insurance market. At the very least, we can certainly say that conservative predictions of catastrophically high rate increases thanks to Obamacare have turned out to be groundless. Again.