SACRAMENTO, Calif. — Covered California Executive Director
Peter V. Lee hailed today’s U.S. Supreme Court decision upholding the provision
of the Patient Protection and Affordable Care Act that allows all eligible
people who purchase health insurance through the federal exchange to receive
subsidies to help them pay for their coverage.
Although Covered California enrollees were not at risk of
losing their subsidies as a result of the Supreme Court decision, a ruling
invalidating subsidies offered through the federal health exchange could have resulted
in changes to the federal law, which could have affected California.
“Covered California enrollees and anyone in our state who
still needs health insurance should breathe easy knowing the Affordable Care
Act is truly the law of the land and is here to stay,” Lee said. “This historic
law is changing our health care system for the better, giving people access to
the best doctors and hospitals in our state.”
Since opening its doors in January 2014, Covered California
has helped provide health insurance to more than 1.8 million people. Covered California estimates that in 2014 it
provided more than $5,200 in subsidies per household per year, or about $436
per month.
The total amount
of subsidies, or Advanced Premium Tax Credits, was $3.2 billion paid to health
insurance companies in 2014 on behalf of Covered California enrollees.
Consumers themselves paid $1.1 billion toward those policies in 2014, meaning
that for every dollar a subsidized Covered California consumer spent on
premiums, the federal government paid another $3
“Today
the Supreme Court made the right decision,” Lee said. “With the Affordable Care
Act, millions of Americans join those with employer-based coverage in getting
health insurance in part because of federal tax subsidies. The subsidies have
helped millions of Americans, including individuals I have met whose lives were
saved as a result of the care they received.”
With
the support of federal subsidies, the majority of consumers enrolled with
Covered California pay less than $150 per month for their premium, with many
tens of thousands of consumers paying less than $10 per month for coverage.
Open
enrollment for coverage starting Jan. 1, 2016, is scheduled to begin Nov. 1,
2015. Special enrollment for health coverage if an individual has a change in
life circumstances, such as moving, having a baby or turning 26, continues year-round.
Medi-Cal enrollment also continues year-round.
About Covered California
Covered California is the state’s marketplace for the
federal Patient Protection and Affordable Care Act. Covered California, in
partnership with the California Department of Health Care Services, was charged
with creating a new health insurance marketplace in which individuals and small
businesses can get access to affordable health insurance plans. Covered
California helps individuals determine whether they are eligible for premium
assistance that is available on a sliding-scale basis to reduce insurance costs
or whether they are eligible for low-cost or no-cost Medi-Cal. Consumers can
then compare health insurance plans and choose the plan that works best for
their health needs and budget. Small businesses can purchase competitively
priced health insurance plans and offer their employees the ability to choose
from an array of plans and may qualify for federal tax credits.
Covered California is an independent part of the state government whose job is to make the new market work for California’s consumers. It is overseen by a five-member board appointed by the Governor and the Legislature. For more information about Covered California, please visit www.CoveredCA.com.
