Health Insurers Anticipate Policy Changes With Two Sets Of Rate Proposals

With the Affordable Care Act in limbo, California is allowing some health insurers to submit two different premium rate proposals: one if the law continues and the other if it doesn't.

Along with the Republican health care bill, the Trump administration has made moves toward removing two key Obamacare provisions.

One is the Individual Mandate, which imposes fines on people who are not covered. The other is a $7 billion federal subsidy for low-income consumers.

California Insurance Commissioner Dave Jones says he's letting insurance companies take that uncertainty into account.

"I know we're going to see much higher filings from the health insurance — what I'll call, 'Trump rates,'" Jones says. "I wanted to also give them a chance to file a second set of rates."

Covered California is similarly allowing the health plans it oversees to submit various proposals based on potential federal policy changes.

A study by Covered California found if both the Individual Mandate and the federal low-income subsidy are removed, premiums could increase by nearly 50 percent next year.

Insurers were required to submit proposals by May 1. Their rates will be made public mid-July.