Covered California released on August 4th, 2020 the weighted average rate increases in California for the individual and family health insurance market. Rates on average are increasing 0.6% statewide in 2021, setting a new record low and beating the 0.8% rate increase for 2020. Furthermore, all 11 health insurers participating in the individual market in 2020 will continue to operate in California in 2021 with Anthem & Oscar both expanding into additional counties.

Pre COVID-19, the health insurers were actually expecting a 4-8% rate increase for 2021 across the 11 participating health insurance carriers. Some factors that helped keep rates flat have been the removal of the federal health plan tax, Covered CA’s fee reduced from 3.5% to 3.25%, many people postponing elective surgeries during COVID-19 and more people using telemedicine providers included in their health insurance.

Regionally, southwest Los Angeles (price region 16) is seeing a weighted average 2.1% decrease while northeast Los Angeles (price region 15) is seeing a 0.9% decrease. Orange County (price region 18) is seeing a 0.7% increase while neighboring San Diego County (price region 19) is seeing a 1.5% decrease. For a full list of rate increases for all 19 price regions, please click here. Although there is still a statewide increase of 0.6%, that is nothing compared to the increases we saw in 2017, 2018 and 2019 of 13.2%, 12.5%, and 8.7%. Hopefully, we will continue to see health insurance rates rise slower than that of inflation after years of rising above inflation. For more information about the 2021 health insurance premium please read the newest Covered California press release.

At Solid Health Insurance Services, we will keep you up-to-date on the changes to the 2021 health insurance market. All of our clients will receive communications about their existing and renewal rates and will be informed of any alternatives that may better fit their budget and medical needs. Please contact us at 310-909-6135 or email us at to go over your 2021 renewal options once they are available.