About half of Covered California enrollees pay $1 monthly premium for health care coverage
Close to half the people who bought health insurance through Covered California this year — 46.7%, to be exact — are paying $1 a month for coverage as a result of new subsidies from the American Rescue Plan, the agency announced Thursday.
Peter V. Lee, the executive director of Covered California, said: “We are seeing clear evidence that the law is helping families by lowering premiums, increasing enrollment and addressing health disparities.”
A record 1.6 million California residents have signed up for a health care policy through the state-based insurance exchange as it has opened special enrollment periods, according to Covered California. The agency has enrolled 257,350 people since it started promoting the new benefits of the American Rescue Pan on April 12, Lee said, and that’s 164% higher than in 2019 when the state last held a special enrollment.
According to Covered California, a higher proportion of the incoming enrollees are from the African-American and Latin-American communities, both of which have been hit hardest by the COVID-19 pandemic.
Roughly 738,000 people, including two-thirds of households making less than 200% of the federal poverty level, are paying $1 a month for coverage, according to agency data, while Californians in working-class households, which includes individuals making less than $25,520 annually and a family of four earning less than $52,400, are paying monthly premiums that average $35. The average gross premium is $741.
Middle class consumers, those households making 400% of the federal poverty level, are getting federal subsidies for the first time since states and the federal government started offering insurance plans through the Affordable Care Act . What this means is that individuals making between $51,040 and $76,560 and families of four with household income of $104,800 to $157,200 are saving an average of 70% a month on premiums.
“These are the self-employed and the small-business owners that power our state, and the American Rescue Plan is using the Affordable Care Act to save them hundreds of dollars every month on their health care coverage,” Lee said.
He noted that the new subsidies have come at just the right time for people like professional photographers Erin Lubin and Jakob Mosur, whose income dropped drastically amid the shutdowns of the COVID-19 pandemic.
Lubin said: “The pandemic has shown us that any family can have an unpredictable income due to forces beyond anyone’s control. We feel incredibly fortunate to have this access, and we know it is vitally important for families like ours, families with unpredictable income, to have the security and peace of mind that comes with access to quality, affordable health coverage.”
To check on your eligibility or to ask questions, visit www.coveredca.com or call (800) 300-1506.
