Covered California announced that the average rate change for the 2020 individual market will be 0.8 percent. This is dramatically lower than actual average increase over the past five years, 7.9 percent, and the lowest rate change since Covered California first began offering coverage in 2014. The rate change was driven lower due to two new state initiatives designed to improve affordability and encourage enrollment.
An estimated 922,000 consumers will be eligible to receive financial help from the state which will lower the cost of their coverage. This includes, for the first time, many middle-income Californians who were previously ineligible for assistance because they exceeded federal income requirements as well as low-income Californians will also get additional help on top of the federal tax credits that they already receive. Covered California projects that an estimated 229,000 consumers will become newly insured, thanks to the increased financial help, and the restoration of the state individual mandate penalty.
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The new state subsidies will benefit qualifying Californians with incomes in the following ranges: Qualifying Annual Income Ranges for Additional State Financial Help in 2020 |
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Household Size |
Up to 138% of FPL* |
200% – 400% of FPL |
400-600% of FPL |
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1 |
$0 – $17,237 |
$24,980 – $49,960 |
$49,960 – $74,940 |
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2 |
$0 – $23,336 |
$33,820 – $67,640 |
$67,640 – $101,460 |
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3 |
$0 – $29,436 |
$42,660 – $85,320 |
$85,320 – $127,980 |
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4 |
$0 – $35,535 |
$51,500 – $103,00 |
$103,000 – $154,500 |
*Consumers in this income range may also qualify for Medi-Cal.
How much financial help will be available?
Based on the chart above, consumers who earn between 400 and 600 percent of the federal poverty level (FPL) will receive an average of $144 per household, per month, which will help them save an average of 30 percent on their current premiums.
Restoring the individual mandate was a key factor in driving premiums lower.
Covered California 2020 Open Enrollment Period:
October 15, 2019 – January 31, 2020
