Covered California sign-up period lasts until July 31

SACRAMENTO, Calif. — Covered California announced that it will submit its budget and annual report to Gov. Gavin Newsom and the state Legislature on Thursday.

The $440 million budget for fiscal year 2020-21 highlights the agency’s ongoing stability and increases its significant investments in marketing and outreach to connect with consumers during the current recession and ongoing pandemic.

“These are unprecedented times, and Covered California is stepping up to answer the call for the millions of Californians who have been affected by this recession and pandemic,” said Peter V. Lee, executive director of Covered California. “We are increasing our investments in marketing and outreach to make sure people know that Covered California is here for them if they need health insurance.”

Covered California’s budget for FY 202021 contains no state funding because the agency’s revenue comes exclusively from a small monthly surcharge health insurance companies pay for each enrollee. The budget calls for spending $440 million in FY 2020-21, which represents a 16 percent increase over last year, with more than $157 million devoted to marketing, sales and outreach.

During the pandemic, California’s unemployment rate jumped to a record 16.4 percent in April 2020. The University of California, Berkeley Labor Center also estimated 2.6 million people and their dependents also lost the health care coverage that came with those jobs.

“California is committed to helping people get access to the health care they need, and Covered California looks forward to building on the state’s policies to make a difference in the lives of Californians who need coverage,” said Lee. “We want everyone to know that they have a path to coverage, whether it is through Covered California or Medi-cal. Investing more in getting our message out there is the right thing to do.”

Spending on the Service Center and Consumer Experience will total $135.4 million and account for 31 percent of total expenses.

Spending for Technology (IT and Consumer Enrollment System) will total $61.4 million and represent 14 percent of total operating expenses.

Covered California experienced a 41 percent increase in the number of consumers who signed up for coverage during the most recent open-enrollment period.

“California is building on and going beyond the Affordable Care Act, continuing state subsidies and providing help consumers when they need it most,” Lee said. “We want everyone to know that, whether they are uninsured or recently lost their health care coverage due to the pandemic and recession, that Covered California and Medi-cal stand ready to help them access quality health care coverage.”

Covered California is currently holding a special-enrollment period due to the COVID-19 national emergency. Anyone who meets Covered California’s eligibility requirements, which are similar to those in place during the annual openenrollment period, can sign up for coverage through July 31.

The most recent data shows 209,770 people signed up for health care coverage between March 20 and July 11, which is more than twice the number who signed up during the same time last year.

Californians who sign up for coverage may be able to benefit from a new state subsidy program that expanded the amount of financial help available to many people. The subsidies are already benefiting about 625,000 Covered California consumers. Roughly 576,000 lowerincome consumers, who earn between 200 and 400 percent of the federal poverty level (FPL), are receiving an average of $608 per month, per household in federal tax credits and new state subsidies (which averages $23 per household). The financial assistance lowers the average household monthly premium from $881 per month to $272, a decrease of 70 percent.

In addition, nearly 32,000 middle-income consumers have already qualified for new state subsidies, with average state subsidy to eligible households is $504 per month, lowering their monthly premium by nearly half.

Covered California is working with the more than 10,000 Certified Insurance Agents who help Californians sign up and understand their coverage options through phone-based service models.

“We continue to be in a different world right now, but social distancing does not mean you cannot get personal help,” Lee said.

“Health insurance is just a phone call away, and our agents and staff are ready to help people get the coverage they need.”

Consumers can find out if they’re eligible for Medi-cal or other forms of financial help and see which plans are available in their area by using the Coveredca.com Shop and Compare Tool and entering their ZIP code, household income and the ages of those who need coverage.

Those interested in learning more about their coverage options can also visit www.coveredca.com or Call Covered California at (800) 300-1506.