The Covered California 2015-15 budget proposal was just revealed on May 13th and it showcases the same prudent fiscal planning that helped it to establish the biggest state health exchange in the country.
The federal Patient Protection and Affordable Care Act resulted in the establishment of Covered California’s insurance marketplace, which it created in partnership with the California Department of Health Care Services.
The following are a few of the highlights of the Covered California 2015-16 budget proposal:
- This upcoming year will be the last year that federal establishment funds will be used. Covered California will receive roughly $100 million in federal funding for this year in order to continue to fund planning, development and implementation activities to continue to establish the biggest state exchange in the country. After this year, Covered California will begin relying on fees that it collects from its health plans in addition to the reserves saved from federal funds.
- The fiscal year should end with almost $194 million in unrestricted reserves, which is enough for more than six month’s of operating funds. This means that Covered California is currently on strong financial footing.
- If enrollment in the upcoming year ends up being larger than anticipated, then Covered California will lower the assessment they charge health plans. If enrollment ends up being lower than expected, they will explore the reduction of costs and either reduce reserves or increase the assessment they charge health plans.
- In order to maintain a positive balance sheet, Covered California will begin to rely more on state personnel and less on contracted services in order to accomplish their goals and serve their customers.
These are just a few of the highlights of the Covered California 2015-16 budget proposal. For more information about Covered California, contact us at the Benefits Store today.