Two new initiatives are credited for the historically low increase: state-funded tax credits for middle-class enrollees, and a new tax penalty on the uninsured. (Photo: Shutterstock)
Premiums on California's health insurance exchange will rise by an average of 0.8 percent next year, the lowest increase in the agency's history, state officials announced Tuesday.
Covered California Executive Director Peter Lee credited two new statewide initiatives for keeping the proposed rate hikes low: Next year, California will be the first state in the country to offer state-funded tax credits to middle-class enrollees, which will be paid for in part by a new tax penalty on Californians who don't have health insurance.
“It shows what happens when a state says, 'Protect the Affordable Care Act and build on it to make the system work for all Californians,'” Lee said.
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