Starting January 2014, the Patient Protection and Affordable Care Act requires states to establish health insurance marketplaces (also called exchanges). In California the health insurance marketplace is called Covered California. It is important to note that you will still be able to buy health insurance outside the marketplace.

Small businesses with 50 or fewer employees will be able to purchase insurance in the Small Group Option Program (also called SHOP). Participating health plans include Blue Shield of California, CCHP (Chinese Community Health Plan), Health Net, Sharp, Western Health Advantage, and Kaiser Permanente. If you do not have health insurance through your employer, individuals and families will be able to purchase insurance on the individual marketplace.

All of these plans will offer a core set of benefits called essential health benefits. These benefits include items such as doctor visits, ambulatory patient services, emergency room services, hospitalization, emergency care, maternity, newborn care, preventive services, mental health services, behavioral health treatment and prescriptions.

The marketplace plans have four levels of coverage: bronze, silver, gold and platinum. Bronze plans will have lower monthly premiums but higher out of pocket costs for medical care. On the other hand, platinum plans have a higher monthly premium but lower cost when you need medical care. An employer purchasing plans in the SHOP will have to select plans all from one coverage level. Employees will have flexibility of being able to select from different plans in that specified level.

Individuals and businesses will be able to enroll in the health insurance marketplace starting Oct. 1, 2013. Coverage will take effect on or after Jan. 1, 2014.