In California, the state-based health insurance exchange through which individuals purchase qualified health plans is:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Covered California is the state-based health benefit exchange established under California law to serve the individual market and small employers. Individuals who do not have affordable employer coverage can use Covered California to compare qualified health plans, determine eligibility for premium tax credits and cost-sharing reductions, and enroll in coverage. Financial assistance is available only to individuals who purchase their QHP through the exchange rather than outside it. Covered California operates alongside CCSB, its small business arm, and is the single point of entry for subsidized individual market coverage in the state.
Why the other options are wrong
- B) The California Insurance Guarantee Association pays covered claims when an insurer becomes insolvent; it does not sell health plans.
- C) Medi-Cal Managed Care is the state's Medicaid delivery system, not the exchange for purchasing QHPs.
- D) The Department of Managed Health Care is the regulator of HMOs and health care service plans, not the exchange itself.
Memory hook
Covered California is the storefront for individual plans and subsidies in the Golden State.