Most Californians will be required to purchase health insurance under the Affordable Care Act as of January 2014. Those who aren’t exempt from the requirement will face a penalty if they don’t purchase insurance. In response to the new requirement, an insurance marketplace called Covered California was formed. It is designed to provide Californians with access to coverage as well as financial assistance to pay for that coverage in the form of subsidies or tax breaks, for those who qualify. Qualification and level of financial assistance is based on income level.
Four tiered levels of coverage will be offered Covered California including Bronze, Silver, Gold and Platinum. The plans are designed so that the higher the value of the metal, the higher the coverage offered under the plan. For example, the Platinum plan pays 90% of expenses while the insured pays 10%, whereas the Bronze plan pays 60% of the expenses while the insured pays 40%.
The higher-tiered health plans will generally have a higher monthly payment than the lower-tiered plans. Essentially, it comes down choosing between a higher monthly cost and lower payment at the time of service or a lower monthly cost and higher payment at the time of service.
The full list of carriers that will offer coverage in the exchange include:
- Alameda Alliance for Health
- Anthem Blue Cross of California
- Blue Shield of California
- Chinese Community Health Plan
- Contra Costa Health Plan
- Health Net
- Kaiser Permanente
- L.A. Care Health Plan
- Molina Healthcare
- Sharp Health Plan
- Valley Health Plan
- Ventura County Health Care Plan
- Western Health Advantage
Individuals who already have employer-sponsored health insurance that costs less than 9.5% of their income do not need to do anything. Those paying 9.5% or more of their income for health coverage under their employer-sponsored plan may be eligible for financial assistance through Covered California.
Seek Professional Assistance to Explore Your Options
If you do not receive employer-sponsored health insurance and do not have an individual insurance plan, it’s important to consult a professional insurance agent in order to determine whether to seek coverage inside or outside of the exchange before the new law goes into effect.
Benefit Packages will be Exchange Certified and can help you navigate your California health insurance options when the time comes. Visit our website for a quote, or call us toll free at 1-800-356-3615 for expert advice.