DEMOCRAT
Covered California, held up as a jewel in the nation's up-and-down health care overhaul, is setting aside nearly $200 million to fight off projected budget shortfalls as it prepares for what it says is a challenging financial future.
The exchanges being operated by 14 states and the District of Columbia are supposed to be self-sustaining by next year, according to the Affordable Care Act.
A monthly surcharge on insurance policies is intended as the main money-maker for Covered California.
In its short life, Covered California has grown to oversee a $400 million budget, more than 860 employees and offices throughout the state.
The agency is in the process of hiring 350 additional employees, mostly in Fresno.
If the agency fails to generate enough income to pay for its operations, California taxpayers could be on the hook.
The state law that created the California exchange requires it to operate with a balanced budget and a cash reserve.
Additionally, it's prevented from drawing dollars from state government's main checkbook, the general fund, which is supported by taxpayers.
That is, unless there is a separate action by the Legislature, now dominated by Democrats who support the ACA.
http://www.sanluisobispo.com/2014/02/09/2916466/calif-health-exchange-plans-for.html#storylink=cpy
