California is investing $82.5 million to eliminate deductibles and reduce copays for select Covered California plans, benefiting low-income individuals. About 40% of enrollees will qualify for deductible-free plans by 2024. This move aims to enhance healthcare affordability and is part of the state’s budget agreement. An additional $165 million in funding is planned for Covered California in 2025.
California is taking significant steps to enhance the affordability of healthcare for its residents. With an $82.5 million investment, the state plans to eliminate deductibles and reduce copays for certain Covered California plans, which are part of the Affordable Care Act (ACA) exchange marketplace.
Under this initiative, deductibles will be removed for cost-sharing reduction in silver ACA plans, and the cost-sharing for various services in these plans will be reduced. These benefits will be available to individuals with incomes up to 250 percent of the federal poverty line. It is estimated that around 40 percent of the 1.6 million Covered California enrollees will be eligible for these deductible-free plans starting in 2024.
The funding for this initiative is made possible through the state’s budget agreement, and Covered California will receive $165 million in funding in 2025 to sustain and expand these efforts.
Jessica Altman, the executive director of Covered California, highlighted the significance of this step in improving healthcare affordability for Californians. Recognizing that cost remains a major barrier to proper healthcare access for many individuals, the goal is to enhance affordability in every aspect of their healthcare. This move, combined with federal support for premiums under the Inflation Reduction Act, represents the highest level of affordability support ever made available to Covered California enrollees.