Effects of Covered California

Covered California, California’s health plan exchange, will take full effect beginning January 2014.  The Health Benefit Exchange Board has about 1 year to complete their exchange plans before open enrollment begins October 2013.  Covered California will primarily serve individuals and small businesses in hopes to expand and provide affordable coverage.  The Board has estimated that 4.4 million Californians will be using the exchange by January 2016.  The goal is to create an exchange similar to Amazon where people can search, compare, and purchase plans through a navigable website.

Some of the challenges facing Covered California include negotiating health plans and rates with 30 different insurers as well as persuade uninsured individuals to enroll in the exchange.  The Board is currently training and hiring staff to educate individuals and families on the changes occurring through the exchange.  Officials are expecting to spend nearly $90 million on marketing the exchange in the upcoming year.  Some of these marketing efforts include promotions through television series such as “Modern Family” and “Grey’s Anatomy” as well as increasing the number of local grassroots campaigns.

For more information on Covered California, click here.

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