Covered Calif. extends sign-up deadline

Covered California has extended its deadline for consumers to sign up for health insurance after a Texas federal judge ruled that the Affordable Care Act is unconstitutional, potentially creating confusion among consumers.

The previous deadline to sign up for insurance was Dec. 15 in order for coverage to take effect Jan. 1. The new deadline is Dec. 21.

The Jan. 15 deadline to sign up for coverage to take effect Feb. 1 remains unchanged.

The Texas court’s ruling on Friday has no immediate impact on Americans’ health plans because it does not issue an injunction to stop the Affordable Care Act from being implemented and enforced. The case will probably be appealed to the U.S. Court of Appeals for the Fifth Circuit and could end up at the U.S. Supreme Court, a process that would take

months.

“Beyond incredible confusion, there is no immediate tangible effect on consumers,” said Larry Levitt, a health policy expert at the Kaiser Family Foundation. “The ACA is still in place. The federal government is continuing to enforce it. While this case works its way through the courts, consumers shouldn’t see any effects at all.”

The Covered California exchange was created under the Affordable Care Act to sell health plans to consumers who do not get insurance through their employers or Medicaid. About 2 million Californians buy plans through the exchange. About half are low-income earners and receive federal subsidies to help pay for monthly premiums.

Covered California Executive Director Peter Lee said open enrollment “is full steam ahead.”

“No one in California should let this ruling discourage them from enrolling in health coverage or be worried about using the health plan they have,” Lee said in a statement. “The potential confusion surrounding this ruling means giving our consumers five more days to enroll is the right thing to do.”

Covered California officials are expecting enrollment in the individual market to drop 12 percent in 2019, largely because 2019 is the first year since the ACA took effect that people will not have to pay a tax penalty for not having insurance. Congress in 2017 repealed the requirement to buy insurance, known as the individual mandate.

California Attorney General Xavier Becerra said his office plans to appeal U.S. District Judge Reed O’Connor’s ruling to the federal appeals court.