California’s health insurance market is already at a crisis point.
A rising number of people who were previously insured under the state’s health care exchange are now facing the prospect of losing their coverage.
California’s Department of Insurance and the state Health Care Financing Administration (CHFA) say the problem is that the state is now facing a growing number of enrollees who are losing their insurance in the marketplace, which means that premiums have increased by more than 50%.
In addition, the CHFA says that the cost of the marketplaces enrollment has increased more than 150% in the last 12 months, meaning that enrollees are now paying more in premiums than they have in previous years.
“We know that a lot of people are losing insurance coverage.
We know that there are a lot more people who are not paying their premiums,” said CHFA Chief Operating Officer Mike Osterberg.
“So it’s going to be a big challenge going forward.
We don’t know what the numbers are going to look like.”
Osterberg says the CHFAs enrollment has also increased significantly over the past year.
In January, there were more than 15 million enrollees.
In March, there was almost 17 million, and in April there was nearly 13 million.
The CHFA estimates that by 2020, it expects that the enrollment rate will be 20% higher than the current rate.
“That is why the CHFS has been trying to find a solution to the problem,” Osterbergh said.
“It’s a huge problem.
We’ve had the largest increase in the enrollment in the state since we started our enrollment in January 2020.”
The CHFA has been working to find solutions to the CHC’s enrollment problem, which has led to a lot confusion among people who sign up for CHFAS.
“The CHFS is doing everything they can to educate the CHCA enrollment community about the enrollment process,” Ostersberg said.
The biggest challenge the CHSF is facing is the fact that there is not enough data to determine exactly how many people have enrolled in CHCAs.
“The CHFSA and CHFS are trying to get that data to them so they can get a better understanding of how many enrollees there are and how they are going,” Oostersberg said, adding that the CHFW also has been reaching out to the insurance industry and other stakeholders.
The insurance industry is aware of the CHFH’s enrollment woes, as is the CHFC.
“If we were to find that people were going up or down by a factor of 50 or 50, the insurance companies would immediately start looking into it and doing the necessary research and working with CHFS to figure out exactly what the data is saying and how to fix it,” Oosterberg said in an interview with Business Insider.
Oostersbergh says that CHFas enrollment is expected to grow by another 50% in 2020, with the CHCFs goal of reaching 30 million in 2020.
California is not alone.
There are many other states where enrollees have experienced high premiums.
“California has had a really difficult enrollment, and we don’t think it will be able to grow fast enough,” said David Schanzer, a health care policy expert at the Kaiser Family Foundation.
“Even if we did grow it by 50%, it’s still not enough to cover everyone.”
Schanzer added that the problem has implications for the federal government, which is spending billions to cover people with CHFFA enrollment.
“In the long run, it’s probably going to make it more difficult for the CHFLA to raise money,” Schaner said.
In fact, the Federal Communications Commission recently voted to allow insurers to increase premiums by 20% in 2018.
In a statement, the FCC said that it has determined that CHFA enrollment is “not sustainable in the long term.”
“CHFA has experienced enrollment declines that have led to significant cost increases in the CHFs enrollment and are not sustainable in our assessment of CHFA’s long-term sustainability,” the FCC wrote.
Health insurance experts have told Business Insider that if CHFACA enrollment does not grow, the state will be unable to pay out Medicaid benefits to CHFA enrollees, and the CHB’s coverage will likely be eliminated.
Schonzer says that even if enrollment growth were to remain low, it is unlikely that the federal Government would be able afford CHFCA enrollment.
According to Schanberger, CHFAC enrollment has not increased by 50% as predicted by CHFANS actuaries, but it has increased by a much larger factor.
“When you have an actuarial analysis that says CHFAP is not sustainable, you can’t be in a position where you can say ‘I’m not going to cover the CHFB,'” he said.