SACRAMENTO, Calif. – Covered California announced today it
is seeking federal approval for even more affordable health care for hundreds
of thousands of low-income Californians. The so-called Bridge Plans will ease
the transition for families who go in and out of eligibility for Medi-Cal, by enabling
them to purchase standard benefit plans through Covered California at a
substantially reduced cost.
An estimated 670,000 Californians could benefit during 2014
from the Bridge Plan approved by Covered California’s Board. Each year,
approximately 15% of those enrolled in Medi-Cal experience a temporary increase
in income that subsequently makes them ineligible for Medi-Cal. Parents of children
enrolled in the Healthy Families Program will also be eligible, allowing family
members access to a single health care provider. Starting in 2014, many of
these individuals could qualify for federal subsidies to help them buy the plan
of their choice through Covered California.
If an individual must exit Medi-Cal, the Bridge Plan would
provide enhanced financial support to help that person maintain his or her
Medi-Cal managed care plan, and keep the same provider network. This enhanced
continuity would translate to improved quality of care, more efficient delivery
of care, and lower costs to the consumer.
Covered California Board Chair, Diana Dooley said,
"This plan will provide affordable, consistent health care for many low
income Californians when a modest increase in their income makes them ineligible
for Medi-Cal, but private insurance is still too expensive."
The Covered California Board announced its intention to
offer Bridge Plans at the earliest date possible in 2014. Contracts would be
negotiated with qualified Medi-Cal Managed Care plans to develop bridge
products where affordability and continuity of care are primary goals. A recent
study indicates monthly premium costs for health coverage may be the most
significant factor in determining if low-income Californians will purchase
coverage.
Covered California is proposing immediate implementation and
pursuit of federal approval forBridge Plans where individuals are transitioning
from Medi-Cal or are parents of children currently enrolled in Medi-Cal. The
Board also directed staff to explore expanding Bridge Plan eligibility to all
persons whose income is at or below 200% of the federal poverty level –
including persons currently not in Medi-Cal.
“This is another example of California leading
implementation of health care reform by laying out a detailed plan for
providing more affordable care in partnership, and with the support of the
state’s health care community,” said Peter V. Lee, Executive Director of
Covered California.
All Bridge Plan products offered by a Medi-Cal Managed Care
plan must be certified as a Qualified Health Plan (QHP). The California
Healthcare Eligibility, Enrollment and Retention System (CalHEERS) would be the
platform for determining eligibility and enrollment for Bridge Plan
participants.
About Covered California
California was 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 in which
individuals and small businesses can get access to health insurance. With
coverage starting in 2014, Covered California will help individuals compare and
choose a health plan that works best for their health needs and budget.
Financial subsidies will be available to help lower costs for people who
qualify on a sliding scale. Small businesses will be able to purchase competitively
priced health plans and offer their employees the ability to choose from an
array of plans and may qualify for federal tax credits. 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.covered.ca.gov.
