California health insurance costs to increase 4.2-percent, lowest in 3 years

SACRAMENTO (KABC) -- Californians buying individual health insurance coverage on the statewide exchange can expect to see their costs rise by an average of 4.2 percent in 2015.

Preliminary premium rates for 2015 were announced on Thursday by Covered California, the state health insurance exchange.

Covered California Executive Director Peter Lee said 10 of the 11 health plans will return to the exchange. He said that indicates insurance companies are profiting from the new system, now in its second enrollment year.

Lee said the President Obama's Affordable Care Act is working: a 4.2-increase is about half the increase the industry has seen in the past three years.

Health care advocates said the announcement shows "Obamacare" is helping slow runaway insurance rates.

The preliminary rates must be approved by state regulators.

For more information: http://news.coveredca.com/

The Associated Press contributed to this report.