CHA News Article

Covered California Report Emphasizes Importance of Marketing, Outreach

Covered California released a report this week about the critical role that marketing and outreach play in promoting a stable individual health insurance market and making coverage more affordable. The report, Marketing Matters: Lessons From California to Promote Stability and Lower Costs in the National and State Individual Insurance Markets, found that if the federally facilitated marketplace invested at a rate comparable to California — which devotes 1.4 percent of the marketplace’s total premiums to marketing and outreach — it would invest $480 million, which is more than 10 times what the federal government recently announced it would spend to promote enrollment for 2018.

According to the report, if the federally facilitated marketplace invested at this level over three years, it would likely result in 2.1 million more Americans enrolling or keeping their coverage, while decreasing premiums by an average of 3.2 percent, and generating a return on investment for the spending of about five to one.

Covered California recently moved to increase its marketing and outreach budget by $5.3 million, to a total of $111 million for the upcoming 2018 coverage year, with plans to use the extra marketing funding to increase the number of television and radio ads around key dates throughout the upcoming open-enrollment period. California will continue with its three-month open enrollment period, from Nov. 1 through Jan. 31.

A high-level overview of the report and modeling is available on the Covered California website