California Gov. Gavin Newsom signs executive order on health care.
New California Gov. Gavin Newsom is proposing significant support for the Affordable Care Act at the state level, with increased levels of subsidies for consumers and a return of the “individual mandate” for health coverage.
Newsom’s plan would hike the size of subsidies for those who already receive them, and make California the first state to make subsidies available to middle-income families.
“No state has more at stake on the issue of health care,” the new governor said. “California must lead.”
The governor’s budget would provide financial assistance in health coverage to individuals earning up to $72,840 and families of four earning up to $150,600. California will be the first state in the nation to offer subsidies to individuals and families with income between 400 and 600 percent of the federal poverty level.
“To pay for increased financial help for families, the budget proposes fighting back against the federal government’s attempts to destroy the Affordable Care Act by reinstating the individual mandate at the state level,” a statement from his office said.
The year 2019 is the first under the Affordable Care Act not to penalize Americans who choose not to purchase health insurance. State health marketplaces have predicted dire consequences as a result of the federal move to eliminate the tax penalty.
Covered California, the state Obamacare operation, was quick to hail Newsom’s actions, which came in his first week in office:
“We applaud Gov. Newsom for building on the strong foundation of the Affordable Care Act in his first official action,” Covered California chief Peter Lee said. “At a time of ongoing uncertainty in Washington, the governor is not only embracing policies that will lower the cost of coverage for millions in the individual market, but he is also offering increased help to those who are struggling with rising costs.
“Gov. Newsom’s proposals mark concrete and meaningful steps to lower health care costs for millions and increase enrollment,” Lee said.
The news came as Covered California entered the final days of its open enrollment: “We look forward to action from Sacramento in the weeks and months ahead, but today the action is happening in local communities across California where individuals can embrace this reminder from the governor of the importance of coverage and sign up through Jan. 15,” Lee said.
The new Democratic governor also ordered a single-purchaser system for prescription drugs, with the state Department of Health Care Services bargaining on behalf of 13 million Medi-Cal beneficiaries.
Newsom also proposes that California takes another major step toward universal coverage, by extending Medi-Cal eligibility to undocumented young adults who otherwise meet the program’s eligibility requirements.
The governor also signed an executive order to establish a California surgeon general, “who will lead all Californians in addressing the root causes of serious health conditions.”
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