California: Final unsubsidized avg. 2023 #ACA rate changes: +5.6% (0.4 pts lower thanks to #IRA)

Back in July, Covered California posted the preliminary 2023 rate changes for ACA individual market healthcare policies. Overall, the weighted average rate hike was around 6.0% across the entire statewide market.

Yesterday, CoveredCA announced that thanks to the Inflation Reducation Act being signed into law by President Biden...

...@CoveredCA is announcing a reduction in its 2023 average rate change from 6% to 5.6%. The 0.4% decrease is due to the Inflation Reduction Act ensuring increased financial help for next year. Renewal begins Oct. 1 and #OpenEnrollment starts Nov. 1 for #ACA coverage.

Unfortunately they haven't posted the rate changes for each individual insurance carrier yet, but assuming it's fairly even across all of them, the premium savings should amount to something like:

  • Avg. 2022 premium: $579/mo
  • Avg. 2023 premium (preliminary): $614/mo
  • Avg. 2023 premium (final): $611/mo

It should save roughly $3/month per enrollee, or $36/year for ~1.7 million enrollees. That's roughly $61 million in savings (most of that savings will be to the federal government in the form of lower APTC subsidies...due, ironically, to increased APTC subsidies for the next three years...).