Covered California posted a dramatic surge in signups during its open enrollment for the year 2020.
The increase for new health plans was put at 41 percent more than the numbers for 2019.
Covered California credited “new state policies,” notably including the return of an “individual mandate” that penalizes those who do not have health coverage. The federal penalty was removed for 2019, inspiring California to institute its own mandate.
The state Obamacare operation also pointed to “state subsidies to build on and go beyond the Affordable Care Act’s financial help.” These brought more middle-class consumers into the mix.
“Preliminary analysis shows that the total number of net plan selections for 2020 is 1,538,819, which reflects 1,120,767 consumers renewing their coverage and 418,052 consumers newly signing up for coverage during open enrollment,” Covered California said. The number was 295,980 in 2019.
“Californians are seeing that by building on — instead of undercutting — the Affordable Care Act, they are directly benefiting from lower health care costs and more people being insured,” said Covered California chief Peter Lee.
The average state subsidy for eligible middle-income Californians — who up until now were not eligible for any assistance — was $504 per month,” Lee said. “But it’s even more striking that more than one in 10 of those receiving help had their monthly premium lowered by over $1,000. The new state subsidies are making a huge difference to families across California.”
The significant increase in new enrollment was partially offset by an 8 percent decrease in the number of renewing consumers. Covered California blamed that drop on removal of the federal individual mandate, which came at the end of 2018 tax year.
Those without coverage still have a loophole to jump through. Covered California said that effective Feb. 18 it will establish a special-enrollment period for those who were “unaware of the state penalty or the new financial help.” Consumers who fall into those categories, or who are currently insured off-exchange (directly through an insurer) and want to switch to Covered California will have through April 30 to sign up for coverage.
Covered California has a history of extending its deadlines to boost participation. It plans a new campaign to publicize the special-enrollment period. It pointed to a late-2019 study that indicated many state residents were unaware of the new California tax penalty linked to lack of health coverage.
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