Insurers Express Interest in Participating in State’s Insurance Exchange
Peter Lee -- executive director of the state's health benefit exchange -- said that 33 insurers and other organizations have expressed nonbinding interest in participating in the state's insurance exchange, the Los Angeles Times reports (Terhune, Los Angeles Times, 10/31).
The federal health reform law requires states to launch online insurance marketplaces by 2014. California's exchange primarily will serve individuals and small businesses.
About 4.4 million Californians are expected to use the exchange by the end of 2016. Officials plan to open registration for the exchange in October 2013 (California Healthline, 10/29).
Insurer Interest in Participating in Exchange
According to the Times, the state's four largest insurers in the individual market -- Anthem Blue Cross, Blue Shield of California, Health Net and Kaiser Permanente -- have indicated that they are interested in selling plans through the exchange. Meanwhile, smaller insurers and large hospital systems also might offer health plans in certain areas through the exchange.
Lee said, "There will be a lot of competition and interest, which will enable the exchange to be an active purchaser in every region and pick the best five or six plans." He added, "The plans we will be offering in San Diego will be very different from the set of plans in Sacramento or Los Angeles."
Exchange officials are expected to select health plans for the exchange and negotiate rates by June 2013.
Insurers that are not chosen still will be able to offer their policies outside the health exchange.
Exchange Board Selects Name
Meanwhile, the exchange board on Tuesday decided to call the exchange "Covered California."
The new name beat out other finalists, such as Eureka, Ursa and Avocado.
Robert Ross -- an exchange board member and CEO of the California Endowment -- said, "Covered is an action verb, and if we do our job, that's what we want to happen."
The tentative tag line for the exchange is, "Your destination for affordable health care" (Los Angeles Times, 10/31).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.