A memorandum prepared at the request of the California Health Benefit Exchange by the UC Berkeley Center for Labor Research and Education and the UCLA Center for Health Policy Research
- A Basic Health Plan increases overall coverage in California between 60,000 and 120,000 under the base scenario. Under the enhanced scenario, the change in coverage over the no‐BHP model ranges from a 20,000 increase to a 70,000 decrease depending on response to the BHP.1
- We find no negative impact on the risk mix in the overall Exchange/Individual Market as a result of a Basic Health Program.
- A Basic Health Program would reduce the size of the Exchange between 720,000 and 950,000 individuals. This could limit the Exchange’s bargaining power in the individual market, and may affect its ability to generate reforms that would lower the rate of premium cost growth overtime.
- These results assume a $20 per person per month premium in the BHP. A higher premium would reduce the gains in coverage; a lower premium would potentially improve response. [...]