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Gov Newsom, State Lawmakers Announce Expansion Of Covered CA Subsidies

Friday, during a visit to the 2-1-1 Center in San Diego, Governor Gavin Newsom was joined by Senate President Toni Atkins and other for an announcement on the expansion of subsidies for middle class families wanting to use Covered California, the state's health care insurance exchange.

The subsidies are part of the new state budget and will be partially covered by the previously announced implementation a state-level "individual mandate" requiring people who can afford health insurance to purchase a policy or pay a state tax penalty. The federal mandate created during the Obama administration as part of the Affordable Care Act was eliminated by the Trump administration.

In July Newsom said lawmakers cannot afford to ignore the attacks on affordable healthcare for 20-million Americans, and vowed California will continue to fight in court to protect the state's health care coverage policies. Now, he calls the legal challenge to the ACA provisions, including the requirement to provide coverage to those with pre-existing conditions, an existential threat to the economy and quality of life and health of all Californians.

The subsidies will help families of four earning up to $150,00 annually, for example, pay for medical care. In that case the subsidy would be $172. For an individual earning up to $72,000 the subsidies are now in place. "No state has gone that deep into the subsidy expansion," said Newsom.

The ultimate goal is universal health, according to the governor. "We're not there yet."

During the Friday news conference, Newsom restated that without individual mandate, everyone's premiums go up. Atkins added that Covered California rates went up less than one percent for the 2020 coverage year, which is the lowest increase in the 13 year history of the exchange. Without the state mandate Atkins and Newsom admit that rates would have risen by close to eight percent.

In response to a reporter question Governor Newsom also said sanctuary policies in California make people, regardless of their immigration status, more willing to get the health care they need, which he claimed is in the best of interest of all residents in the state.


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