On Wednesday, the Managed Risk Medical Insurance Board voted to decrease members' premiums by an average of 12% next year, the Sacramento Business Journal reports.
Background
The Managed Risk Medical Insurance Program is a state insurance plan for people who cannot obtain health insurance because of their health condition. The program, along with the Pre-Existing Condition Insurance Plan, is set to end when the new California Health Benefit Exchange launches in 2014.
Program officials were considering an average rate increase of almost 10% for MRMIP members. However, Gov. Jerry Brown (D) last month signed a bill (AB 1526) -- by Assembly member Bill Monning (D-Santa Cruz) -- that allows the program to subsidize rates to help keep individuals from leaving the plan because of premium changes (Robertson, Sacramento Business Journal, 10/18).
AB 1526 allows the board to subsidize premiums for program members at no less than 100% of comparable rates for the individual insurance market and prohibits the amount of subsidies from affecting the calculation of premiums (California Healthline, 10/2).
MRMIP premiums are supplemented with revenue from the Proposition 99 tobacco tax hike.
Details of Rate Cut
Under the premium decrease, a single MRMIP member between the ages of 40 and 44 who lives in the Sacramento area and is covered by Kaiser Permanente will pay $452 monthly in 2013, compared with $504 in 2012. A similar member who is covered by Anthem Blue Cross will pay $670 monthly in 2013, compared with $756 this year.
A single MRMIP member between the ages of 60 and 64 who lives in the Sacramento area and is covered by Kaiser Permanente will pay $727 monthly in 2013, compared with $811 in 2012. A similar member covered by Anthem Blue Cross will pay $1,246 monthly in 2013, compared with $1,558 this year (Sacramento Business Journal, 10/18).