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California Health Exchange Launches Enhanced CSR Program

California’s health exchange marketplace, Covered California, announced on July 20 an enhanced cost-sharing reduction (CSR) program to improve health care affordability for enrollees.

Program approval comes after California Gov. Gavin Newsom (D) enacted components of the 2023–2024 state budget agreement, which appropriate $82.5 million of the Health Care Affordability Reserve Fund to Covered California to support financial assistance for coverage year 2024. Per the budget agreement, program funding will increase to $165 million starting in coverage year 2025.

According to Covered California, the funding will support enhanced benefit designs that will reduce out-of-pocket costs for more than 600,000 enrollees, eliminate deductibles for silver plans, and assist many Californians predicted to lose Medi-Cal coverage. Historically, more than 75 percent of individuals determined eligible for subsidies after losing Medi-Cal have been eligible for CSR plans.

Contact Senior Director of Policy Erin O’Malley at or 202.585.0127 with questions.


About the Author

Faridat Animashaun is a policy analyst at America's Essential Hospitals.

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