October 1, 2010: California Governor Arnold Schwarzenegger signed legislation yesterday authorizing the establishment of an online insurance exchange where individuals and small businesses can compare and purchase health insurance coverage. With this legislation in place, California is the first state to begin establishing an exchange since President Obama signed the Affordable Care Act (ACA) in March.
The Governor signed Senate Bill 900 and Assembly Bill 1602 to establish the California Health Benefit Exchange along with an independent oversight board. The five-member board will be appointed by the governor and the Legislature, and it will define how California’s exchange will operate.
California will be receiving a $1 million grant from the federal government to help develop its exchange, which is expected to be up and running by 2014, at which time many components of the ACA are scheduled to take effect. When the Exchange goes live in 2014, it will be funded by fees from participating insurance carriers.