Covered California Announces 2025 Health Plans and Rates: What You Need to Know

What You Need to Know

Covered California has released its preliminary health plan rates for 2025, revealing an average rate increase of 7.9%. Despite various challenges such as higher health care usage, increased pharmacy costs, rising care expenses, and labor shortages, robust financial assistance will help many enrollees see minimal impact on their monthly costs.

Key Highlights:

Enhanced Cost-Sharing Reduction Program: As this program continues into 2025, it will help over a million low-income Californians by eliminating deductibles and lowering out-of-pocket costs for those below 250% of the Federal Poverty Level (FPL).

Regional Rate Changes

• Los Angeles: 7%
• Riverside: 5.3%
• Orange County: 9.6%
• San Diego: 8.1%
• Northern California: 7.7-15.7% (varies by region)

Carrier Rate Changes

• LA Care: 6.3%
• Molina: 6.4%
• Kaiser: 6.5%
• Health Net: 6.4%
• Blue Shield: 8.5%
• Inland Empire Health Plan: 1.8%
• Anthem: 12.8%
• Aetna (Northern CA): 15.4%

New Eligibility for DACA Recipients Starting November 1st, DACA recipients will be eligible to apply for Covered California, offering a new pathway to affordable health coverage for an estimated 40,000 individuals.

Important Dates to Remember:

• Regional Rate Information: Available in early October. We will contact our clients with details.
• Open Enrollment Period: November 1st – January 31, 2025.

Financial Assistance

Due to enhanced federal subsidies through the Inflation Reduction Act, Californians will receive even greater financial support. Moreover, over 90% of Covered California enrollees receive financial help, with many paying $10 or less per month for their health insurance. Additionally, nearly 25% will have a $0 premium in 2025.

What You Need to Know:

Review Your Plan Switching health plans can help lower your costs. It’s important to review your current plan and explore other options to ensure you’re getting the best value.

Update Your Information Contact us if you need to update your income, address, or family status to ensure your information is accurate and you receive the appropriate financial assistance.

Special Enrollment If you experience major life events, such as losing health coverage, getting married, or having a baby, you can enroll now during the special enrollment period.

Examples of Savings:

• For example, a 21-year-old in Los Angeles County at 150% of the FPL (annual income of $22,590) will continue to have a $0 premium after subsidies with an Enhanced Silver 87 plan. Additionally, they will benefit from prescription drugs as low as $5 per month and no deductibles.
• A family of four in Kern County at 325% of the FPL (annual income of $101,400) could expect a premium change of about $20 per month but will qualify for the expanded cost-sharing reduction Silver 73 plan in 2025. They will have no deductibles, and their primary care visits will drop from $50 to $35 per visit.

Covered California remains dedicated to making health care more affordable and accessible for all Californians. Furthermore, with record enrollment and enhanced financial support, 2025 promises to bring even greater affordability and coverage options.

We at Solid Health Insurance Services are looking forward to assisting you with your health and life insurance needs. Our mission is to find you affordable health insurance that fits your budget and medical needs for you, your family, and business.

Contact us at info@solidhealthinsurance.com or call us at 310395-5191 or fill out this quick survey so that we can prepare your quote.

For more information, visit Covered California. Feel free to reach out to us with any questions or updates to your information.