Feds grant California $673 million for health marketplace

January 17, 2013

The US Department of Health and Human Services has awarded California a $673 million grant to build and run the online health insurance marketplace to be known as Covered California.

The money — nearly half the $1.5 billion awarded by the department nationwide Thursday — will go toward refining, testing and bringing the system online, establishing a paralell system for small employers and their workers, marketing and public education to inform the public about the implementation of the Affordable Care Act, enrolling customers into the system and evaluating the the effectiveness of the program.

The latest grant brings to nearly $1 billion the total amount from the federal government to California just to build and run the online marketplace — not counting hundreds of millions of dollars that the state has received to expand coverage to low-income residents as a bridge to the full implementation of the federal reforms next year.

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