California announces big Obamacare hikes

Obamacare plans in California will cost 13.2 percent more on average next year if insurers follow through with their proposed rate increases, the state’s marketplace announced Tuesday.

Rates increased just 4 percent on average the last two years, but they will spike next year partially due to the end of a federal program designed to smooth insurer losses, Covered California Director Peter Lee told reporters Tuesday. With the announcement, California joins other states announcing that Obamacare customers probably will face big cost increases next year.