Competition in California insurance market is growing thanks to the state’s exchange
California’s health insurance exchange, called Covered California, has released a new enrollment report. The report shows that the state’s exchange has had a significant impact on competition in the California insurance market. The exchange has lead aggressive negotiations with insurance companies, ensuring that competition remains strong and consumers have a wealth of options when it comes to finding the coverage that they need. According to Covered California, more than 439,000 new people have enrolled into the exchange.
439,000 people enroll for coverage through Covered California
Of the 439,000 new enrollees, approximately 14,000 have received help in completing their enrollment applications after the open enrollment period ended. These consumers had reported trouble enrolling in the exchange due to computer problems or issues with the exchange system itself. These people were provided more time to enroll for coverage, which means that they were also able to avoid tax penalties from the federal government imposed on those without health insurance. Of the new enrollees, the number of people that opted to acquired coverage from companies outside the four major carriers in the state tripled.
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Smaller insurers are finding it easier to connect with consumers
The state’s four major carriers account for the majority of the market share in California. State officials believe that Covered California has managed to create a marketplace where smaller insurance companies are able to connect with consumers. Insurers are being forced to compete on price and the quality of products that they offer, which has been good news for consumers, as this may lead to less expensive coverage in the future.
Majority of consumers receive subsidies to help afford their coverage
More than 12 million people have enrolled in health insurance exchanges throughout the country, according to the Department of Health and Human Services. The majority of these consumers receive federal subsidies, which are meant to lower the premiums of insurance policies. This has enabled many people to acquire the coverage that they need, even as insurance premiums have grown over the past year.