There are a number of things being said, being written and being speculated about the future of the Covered California health care exchange, all surrounding its survival…or its swooning
1) They have now burned through $1.1 billion and there is no more money available
2) This money was all from federal grants which do not require any scrutiny
3) The current fee is $13.95 per employee per month – how much need it increase?
4) To compensate for losses, they are budgeting a 15% reduction in spending
5) State law prohibits Sacramento from spending or getting any more money
6) Exec Director Peter Lee said in December that he questions “long term sustainability”
7) Enrollment in 2015 fell 300,000 short of their goal – growth rate was only 1%
8) AP reported Covered California took $184 million in no bid contracts related to Peter Lee
9) Whistleblower Peter Hill was fired after complaining about waste and cover-ups
10) YELP has 205 reviews on service for Covered California – 185 were only 1 star
11) 100,000 Covered California customers got wrong or no tax forms
12) How can anyone complain about service…when they have nowhere else to go?
13) Churn rate – one third of 2014 enrollees did not re enroll, but were replaced by the same number that was lost