July 10, 2013
California, the first state to set up a health insurance Marketplace under the Affordable Care Act, has chosen the state’s health plans and announced proposed rates.
Both the insurance plan selection and rates are subject to final approval by state regulators.
Since the plans were picked in late May, some experts have praised the progress in California while others have predicted ”rate shock.” On a swing through the state to promote the sweeping health care reform law, President Barack Obama lauded California’s efforts at creating a state-operated Marketplace (also called an Exchange) and urged the uninsured to sign up for the new insurance options starting Oct. 1.
About 5.3 million of the state’s 38 million residents are expected to be eligible for coverage through the Marketplace, known as Covered California. Of those, 2.6 million are expected to be eligible for subsidies to help cover the cost.