On Monday, a new federal regulation went into effect, allowing around 400,000 Californians to enroll in a more inexpensive health plan via Covered California. Families previously ineligible for financial assistance because one member is covered by an employer plan may now be eligible for premium subsidies if they enroll in a Covered California health plan.
This week, hundreds of thousands of Californians will have access to more affordable healthcare coverage, according to Covered California executive director Jessica Altman. Families throughout California may now save hundreds of dollars per month and thousands of dollars annually by switching from employer-sponsored coverage to a Covered California plan.
In October, the U.S. Treasury Department and the Internal Revenue Service issued the final regulation to fix the so-called “family bug.” Previously, if a family member had affordable employee-only health care, the employee and their family were not eligible for federal financial assistance, even if the cost of family coverage surpassed the affordability level and was deemed unaffordable.
Beginning this week, families applying for 2023 coverage during the current open enrollment period will calculate their eligibility for financial assistance based on whether the coverage cost is reasonable for the employee‘s spouse and dependents.
400 000 Californians might get coverage at a reduced cost. The UCLA Center for Health Policy Research estimates that 615,000 Californians are affected by the so-called “family hitch.” Covered California will now be able to provide financial assistance to 391,000 individuals who were previously ineligible for federal subsidies because a family member had employer-sponsored coverage.
According to the report, among the 391 000 individuals who might profit are:
• 319 000 individuals who might save money by transferring from employer-sponsored coverage or coverage on the individual market to Covered California.
• 72,000 uninsured individuals are now eligible for financial assistance under Covered California The “family glitch” disproportionately affects women, children, and low-income individuals, according to research by the Kaiser Family Foundation.
Covered The California Department of Managed Health Care is an autonomous division of the state government tasked with facilitating the health insurance marketplace for Californians. A five-member board selected by the governor and the legislature is responsible for its administration.