SACRAMENTO, Calif. – Covered California’s Executive Director
Peter V. Lee announced today that California has been awarded a federal grant
totaling $674 millionover two years to continue the development and establishment
of an online health insurance marketplace designed to bring high-quality,
affordable health insurance options to millions of Californians beginning in
2014.
“The funding announced today is based on a detailed business
model which had the input of hundreds of stakeholders and experts in
California,” said Lee. “This is a critical investment in the health and
well-being of millions of Californians to finally have access to affordable,
quality healthcare. We couldn’t be more pleased and honored to take on this
challenge.”
Covered California’s Board Chair Diana Dooley recognized the
tremendous progress California has already made while recognizing the challenges
ahead.“I am extremely proud of the work already done in California to establish
this important marketplace,” she said. “This investment will pay big dividends
as Covered California makes health insurance available for so many uninsured
Californians."
In announcing the funding, Lee noted, “The funding is
substantial; but given the scale of what we’re doing – millions of Californians
and small businesses currently going without insurance or paying too much will
benefit – we have a big job to do.”
The grant is part of the federal Patient Protection and
Affordable Care Act of 2010.
Activities funded by the grant include:
An online web portal where consumers can make
apples-to-apples comparisons of quality private plans and apply federal tax
credits towards the cost;
- Review and certification of quality health plans available for purchase through the online marketplace;
- A multi-cultural, multi-language marketing and education campaign to reach millions of eligible Californians and small businesses;
- A network of community-based “assisters” to help guide individuals through the process of enrolling;
- A multi-language call center to help enrollees with questions about enrollment; and
- An administration office to support efficiencies in the organization, which is expected to employ nearly 700 people by the end of 2013.
Covered California’s business model calls for the state to
operate the marketplace beginning in 2015 without either any federal funding or
any funds from the State of California, relying only on fees assessed on plans
sold through the marketplace.
About Covered California
California is the first state to create a health benefit exchange
following the passage of federal health care reform. Covered California is
charged with creating a new insurance marketplace that allows individuals and
small businesses to purchase competitively priced health plans using federal
tax subsidies and credits. Coverage starts in 2014.Covered California is
overseen by a five-member board appointed by the Governor and Legislature; the
California Health and Human Services Secretary serves as an ex officio voting
member and is its current Chair.
For more information on Covered California, please visit
www.healthexchange.ca.gov.
