The state sets up a new marketplace for buying affordable health insurance

California implemented a health insurance marketplace and expanded Medi-Cal on Oct. 1 in response to the Patient Protection and Affordable Care Act passed by Congress in 2010.

For most college-aged students, this means the under 26 can qualify to receive their parents’ health insurance.

If their parents do not have health insurance or it is too expensive, they can qualify for affordable health insurance through the state’s program Covered California.

“There will be four basic levels of coverage: Platinum, Gold, Silver and Bronze,” according to the Covered California website. “You can choose to pay a higher monthly premium so that when you need medical care, you pay less. Or you can choose to pay a lower monthly premium, which means that when you need medical care, you pay more.”

Those who still find the program unaffordable can choose from three different financing options, depending on their health and income.

The premium assistance option will reduce the cost of the monthly premium an individual pays.

The cost-sharing assistance option would reduce out-of-pocket costs, like copayments and deductibles.

In addition to the aforementioned options, Medi-Cal eligibility will also be determined through the new marketplace.

Those who don’t qualify for Medi-Cal can still sign up for a minimum coverage plan if they are under 30 and/or experiencing financial hardship.

The minimum coverage plan was “designed to cover excessive medical bills that occur above the limit that you would be able to manage financially,” according to Covered California.

The state has taken several steps to ensure inclusiveness and affordability.

On top of that, Covered California requires insurance providers to ensure access to ten essential health benefits:

1. Ambulatory patient services
2. Emergency services
3. Hospitalization
4. Maternity and newborn care
5. Mental health and substance use disorder services, including
behavioral health treatment
6. Prescription drugs
7. Rehabilitative and habilitative services and devices
8. Laboratory services
9. Preventative and wellness
services and chronic disease management
10. Pediatric services, including oral and vision care

A major point of criticism is the fact that the marketplace websites across the nation have frequently been down for maintenance.

The online marketplace is not the only way to sign up for health insurance.

Covered California is “training local people in your community right now to help you learn about the new options for health insurance.”

The Service Employees International Union Local 521 received a million dollar grant to educate the public about the health insurance market and has five months to spend it.

“Over 4,000 (people) have said tell me more about Covered California and how can I enroll to get health insurance,” Luisa Blue, Chief Elected Officer of SEIU Local 521, said in an interview on National Public Radio.

Opponents of the new healthcare reforms refer to the penalties as a major problem. If uninsured individuals do not sign up by March 31, 2014, they will have to pay fines as a consequence.

“In 2014, the fine will be 1 percent of yearly income or $95 per person, whichever is greater,” according to Covered California. “By 2016, the fine will be 2.5 percent of income or $695 per person.”

Janet Chang, director of Student Health Services at San Jose City College, believes the cost of the penalty is heavily outweighed by the benefits of signing up.

“If I were a single person or had a family,” said Chang, “I would sign up right away.”