Covered California to lower patient costs after Democratic lawmakers win funding from Newsom [The Sacramento Bee]
Weeks after Democratic lawmakers forced Gov.
The state’s health insurance exchange will zero out some patients’ hospital deductibles, up to
Covered
“Deductibles uniquely detract people from seeking care, so that’s a significant focus,” Altman told
Additional reductions in patients’ out-of-pocket costs — on top of existing federal health insurance subsidies to reduce monthly premiums — will take effect in January for people renewing or purchasing coverage during Covered California’s next enrollment period, which begins in the fall. The state could go further in helping reduce patients’ costs in subsequent years with future budget increases, Altman said.
Still, those savings may be offset by higher costs elsewhere. Covered
Legislative leaders had pushed Newsom, a fellow Democrat, to funnel the tax revenue into lowering health care costs for low- and middle-income people purchasing coverage via Covered California — many of whom reported skipping or delaying care due to high out-of-pocket costs.
The governor for years resisted pleas to put penalty money into Covered California subsidies, arguing that the state couldn’t afford it and needed the money given looming economic downturns and the potential loss of federal premium subsidies — which could be threatened by a change in federal leadership.
But under ongoing pressure, Newsom relented in June and agreed to begin spending some of the money to boost state subsidies. According to the state
The budget deal also allows the Newsom administration to borrow up to
Covered
The boost in funding, which represents the state’s most significant effort to slash patients’ costs in Covered California, will largely benefit lower-income Californians who earn below 250% of the federal poverty level, which is
“Bringing down deductibles goes a long way to help middle-class
Atkins added, “We will continue our work to lower the costs even more in the years to come.”
Newsom spokesperson
Originally required by the federal Affordable Care Act, the so-called individual mandate to hold health coverage or pay a tax penalty was gutted by
“Even though they may disagree on the big picture of health care reform and single-payer,
Democratic leaders in the state have faced political blowback for not using the penalty revenue for health care, details first reported by
Advocates say the deal represents a win for low- and middle-income people.
“We’re excited that this money is protected for health care, and ultimately is set aside for future affordability assistance,” said
Advocates want the state to tap those health care dollars to get more people covered, such as lowering health care costs for immigrants living in the state without legal permission.
A bill this year by Assemblyman
“We’re working hard to create a system that has equal benefits and affordability assistance for everyone,” Arambula said.
©2023 The Sacramento Bee. Visit sacbee.com. Distributed by Tribune Content Agency, LLC.


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