The objectives of this issue brief are: (1) to examine how insurance reforms required by the Affordable Care Act will affect benefit packages currently offered by California employers and (2) to estimate out-of-pocket expenses and actuarial values for households with employment-based health plans in California in 2010.

The President’s health reform proposal would provide a direct benefit to a significant number of Californians. We estimate that close to 4 million people who are either uninsured, in the individual market, or currently have unaffordable job-based coverage would be eligible for Medicaid or for subsidies in the new exchange.

This paper examines health care spending for the estimated two million Californians who would qualify for subsidies under the proposed insurance exchanges in the House and Senate health reform bills.

This issue brief has identified how persons currently receiving health insurance from their employer will also be affected by reform. In most cases, reform will increase the amount of financial protection employees receive.