Is Covered California for you?

Covered California is the Affordable Care Act exchange or marketplace for the state of California.  It was set up to provide a place for Californians to buy new ACA qualified plans beginning in 2014 and it’s the only place for Californians to go to receive a subsidy on their health insurance.

When Covered California was announced, I was immediately skeptical.  Government does not have the best track record when it comes to dealing with consumers.  Think of your experience at the DMV.  Think of the Social Security office.  What comes to mind?  Long lines and disinterested employees.

Competition is good

Competition is what prevents disinterest and poor service.  Companies that have a track record of disinterest and poor service don’t stay around for long.  Government agencies don’t have competition and so indifference becomes the norm.

With only one year under its belt, Covered California is showing very clear signs of following the footsteps of every other government agency.  During open enrollment for health insurance plans beginning in 2014, Covered California was plagued with a broken website and a severely understaffed service center.  But before we just blame it on bureaucracy, you should know that the actual health insurance companies experienced the same problems.

Whether calling Covered California, Anthem, or Blue Shield of California during 2014’s open enrollment, customers and agents alike could expect busy signal or 3-4 hour wait times to get questions answered.  It was new.  The technology wasn’t ready.  There wasn’t enough time to get service staff trained.  Valid excuses?  Maybe.  So let’s give them the benefit of the doubt.

Open enrollment for 2015 is here now.  Have these companies learned anything?  Did they use the bumps and bruises from last year as clear warning signals on how not to do business this year?  The answer is Yes, and of course, No.

Call center comparison

This week I have already had to call Covered California, Anthem, and Blue Shield of California.  I’m happy to report that both Anthem and Blue Shield (those with competition) are well-staffed and very well-informed.  Dealing with them this year has been a breath of fresh air.  Hold times are 3-4 minutes, not hours.  Covered California…not so much.

During the first day of open enrollment I ran into 3 questions I needed answers on.  Covered California has 3 ways agents can contact them for help.  Call, chat, or email.  I have called around 15 times these first 3 days.  13 of the phone calls were met with a recording saying all agents were busy, try again later.  The other 2 phone calls got through…to a queue.

The first call I entered at #83.  I held for close to two hours at which point a very inexperienced representative came on the line.  He had no idea what I was talking about but was typing my questions to someone who may have known the answers.  Unfortunately, he hung up on me before those answers came.

The second call that connected brought me in at #92.  I held for 45 minutes until I had to hang up and do other tasks.

My attempts at using the online chat have been very similar.  Long hold times ending in getting disconnected.  I’m convinced there really is nobody on the other end of the online chat.

My email attempt has thus far gone unanswered.

So is Covered California right for you?

I think the answer is pretty clear.  Stay away from Covered California if at all possible.  There is one reason to use Covered California.  The federal subsidy.  If your annual household income fits in the chart below, you are eligible for reduced health insurance premiums and possibly even enhanced coverage.  If your annual household income does not fall in the chart below, do yourself a favor and buy your health insurance from an independent insurance agent in the private marketplace.

There is only one place to go to get those subsides:  Covered California.  However, you don’t have to go to Covered California alone.

Agents are the answer

The one thing Covered California got right from the beginning was including health insurance agents as part of their sales force.  Licensed, professional health insurance agents have years of experience in studying health insurance policies and are experts in explaining their complexities to the buying public.

If you are expecting a subsidy, you need a Certified Insurance Agent to help you apply.  We are Certified with Covered California and can help you determine subsidies, get quotes, and apply.  Use a Certified Insurance Agent.  Be treated the way you deserve and the way true marketplace survival requires.