Feds Give California Health Insurance Exchange $674 Million
By
Amy Quinton
Thursday, January 17, 2013
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Covered California, the state’s new health insurance exchange, has received $674 million from the federal government.
The two year grant will help pay to develop an online exchange where consumers can compare health insurance plans and apply for federal tax credits toward the cost of insurance.
It's the final funding Covered California will receive from the federal government for planning.
In 2015, the exchange will have to rely on fees assessed on exchange policies.
Covered California Executive Director Peter Lee says while the grant is less than the $706 million requested, he doesn't expect the exchange to need more money.
LEE: "So we're excited about this announcement, but more importantly we're excited about being part of what is the biggest transformation of America's health care system since the launch of Medicare 50 years ago."
The grant will also pay for a call center to help consumers
and a multi-language education campaign.
California is the first state to create a health insurance
exchange following passage of the Affordable Care Act.