The exchange enables eligible individuals and small businesses to purchase private health insurance coverage at federally subsidized rates.

[1][2] The California Health Benefit Exchange was created in September 2010 when then-Governor Arnold Schwarzenegger signed Assembly Bill 1602, (the "California Patient Protection and Affordable Care Act"),[3] by Assembly Speaker John Perez, and Senate Bill 900,[4] by State Senator Elaine Alquist, into law.

[7] Efforts to educate potential enrollees about Covered California began in 2013, including $37 million in grants to 48 organizations.

Since Covered California is a part of the Affordable Care Act, there are some essential health benefits that the insurance companies must offer to consumers.

All Covered California health insurance plans provide pediatric dental care.

The current board includes CA HHS Secretary Dr. Mark Ghaly, chair, and Paul Fearer, Jerry Fleming, Dr. Sandra Hernandez, and Art Torres.

[30] A 2014 analysis estimated that "between 1.1 and 1.3 million people will be enrolled in Covered California with subsidies at any point in time" due to the churn rate.

[32] A 2015 California Healthcare Foundation study found that the number of hospitals in an insurance network did not significantly affect the quality of care patients received.

[33] A study in the journal Health Affairs indicated that while hospital networks sold on the marketplace are narrower than their commercial counterparts, geographic access is similar, and the quality of care may even be better.

[34] However, a lack of healthcare provider options may weaken the leverage of insurance companies when negotiating prices, leading to higher premiums.