August 26th, 2010

Reports the Wall Street Journal:

California passed legislation creating a health-insurance marketplace, a move set to be echoed across the country as states take steps to implement federal law.

Millions of Americans around the U.S. are expected to eventually purchase their coverage through such exchanges, which will offer health plans to individuals and some small businesses.

The California legislature on Wednesday passed the second of two related bills to set up the exchange, putting the state at the forefront of efforts nationwide and creating a blueprint that will likely influence other states. Under the national health-care overhaul law passed in March, states are supposed to set up exchanges, or their residents will be offered a federal version.

California Gov. Arnold Schwarzenegger, who has said he supported implementing the federal law, is expected to sign the bills.

Many aspects of the exchange are mandated under the federal law, so many features of California’s model will be included in those adopted by other states. The exchange is expected to offer insurance through a website that will provide standardized and detailed information about plans, so consumers can compare them. It will have a toll-free number, and will set up a program of live helpers, or navigators, to help explain plans to consumers.

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