Covered California receives $674 million grant
The California health insurance exchange, which is called Covered California, has been awarded an additional $674 million in funds from the federal government. The funds will help with the development and launch of Covered California, as well as power the marketing campaign that will promote the health insurance exchange. The funds will be issued to the state over the next two years, with part of this grant to be used after Covered California officially begins operation in 2014.
Funds to be used to market new exchange system
Peter Lee, executive director of Covered California, notes that the funds are a major boon for the state’s health insurance exchange, but that the state has a lot of work left to do before the system can be considered viable. The exchange is meant to provide affordable health insurance coverage to California residents, many of whom are currently without any kind of insurance protection. Later this year, Covered California will launch an aggressive marketing campaign, which will be partially funded through the government grant.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
Some funds will be given to non-profit groups to help raise awareness
The funds will not be used solely by Covered California. Lee notes that some of the federal money the state has received will be given to religious and non-profit groups in order to spread awareness of the health insurance options consumers have. Lee suggests that this is a better move than hiring celebrities to spread the message, as consumers are more likely to take to heart the message offered by non-profit groups they trust rather than entertainment figures.
California insurers to submit bids for policies next week
Next week, California’s health insurance companies will be submitting bids for the coverage they will sell through Covered California. These insurers will be providing the program and state officials with intricate information concerning these policies and the networks of medical providers they represent. The policies sold through Covered California must meet with the program’s rate standards and must provide a minimum level of benefits for all policies in order to meet with the exchange’s provisions.