Covered California takes a dig at the federal government correctly pointing out that rate increases, because of the removal of the individual mandate, means the subsidy amounts for consumers in Covered California will increase, “…the federal government will end up paying an estimated $250 million more in higher tax credits.” The loss of consumers will also impact Covered California. They estimate that enrollment in Covered California could decrease by as much as 162,000 individuals. Covered California is funded by a health plan fee for every member who enrolls through Covered California.
As the date for the ACA open enrollment approached, most health insurance agents were nervous about what to expect and what role they might play in helping clients enroll in the new health plans. This anxiety was enhanced by the cold shoulder given them by Covered California and the health insurance companies in terms of training and information. At the end of open enrollment, many agents felt as if they had been abandoned by the carriers and Covered California while trying to help their clients. This has left some agents wondering if now is the time to organize into a guild and work for better training, enrollment tools and fair compensation for the assistance they provide to their clients.