Advertisement Covered California rates to increase 13.2% for 2017 Health insurance exchange to triple 2016's rate spike Share Shares Copy Link Copy

Covered California announced Tuesday that health insurance premiums will increase by 13.2 percent for 2017.That increase is more than triple the rate spike for the insurance exchange in 2016. Covered California sells insurance coverage to 1.4 million people who don't get coverage from an employer or any other program.Officials attribute the rate increase to customers who turned out to be more expensive than originally thought, the rising cost of specialty drugs and the loss of federal subsidies."2017 was always known to be a transition year," Covered California Executive Director Peter Lee said. "The Affordable Care Act provided financial support for the health plans for the first three years to lower the premiums with everybody."The average increase is also being driven by two large insurers, Anthem Blue Cross and Blue Shield of California, which together cover half of the Covered California market, Lee said. Anthem requested a 17 percent increase, while Blue Shield is seeking 20 percent.The average increase ended up at 13 percent because most of the other participating insurers requested rate increases of less than that amount. Prices for the two lowest-cost plans with the most popular benefit package, known as a "silver" plan, will rise by 8 percent.For Sacramento's Karri Grant, who's battling cancer for the second time, the increase comes as a surprise and shock."That's a pretty big hike, and it feels a little bit to me like a bait and switch with this program," Grant said.In 2014 and 2015, premiums rose by a more manageable four percent.Grant called herself middle class and worries about paying more for her current coverage. She also wonders how much longer she can afford the increases."I make too much money to receive some of these programs that claim to be out there for me," Grant said. "However, I certainly don't make enough money to receive the insurance coverage that really would provide me the things that I truly need."The proposed rates are subject to review by state regulators, who can label them as unreasonable but can't block them.Plan prices are based on a person's income. Officials argue that despite increases, it's still affordable coverage for all Californians who need insurance.Californians who don't have insurance will be fined $1,000 when it's time to pay their taxes.The rate announcement comes as many other states are already reporting big spikes in insurance premiums for the fourth year of President Obama's Affordable Care Act.The proposed increase in California is higher than the average for states that have already reported insurance premiums so far, though many insurance companies are seeking large increases.In 14 states analyzed by the Washington, D.C.-based consulting firm Avalere Health, the cost of an average-priced plan will rise 11 percent if insurers are allowed to adopt the rates they've requested.