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More middle-class Californians cancel health coverage after losing federal aid

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More middle-class Californians cancel health coverage after losing federal aid

Facing higher premiums and the loss of federal subsidies, 374,000 people with health insurance from the state marketplace known as Covered California canceled their coverage in the first three months of the year, according to government statistics.

The cancellations amount to 19% of those who had renewed their policies on the state marketplace during open enrollment, state officials said. Those cancellations are higher than in the past three years when they ranged from 13% to 15% of those who renewed.

Jessica Altman, executive director of Covered California, attributed the jump in cancellations to the expiration of enhanced federal subsidies that caused the cost of a plan to leap for most middle-class Californians.

“We expect coverage losses to increase through the year,” she said.

Overall, Covered California had 1.8 million enrollees in February, down from 1.94 million the year before — a decline of 7%.

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Altman said monthly enrollment numbers are delayed because consumers have a three-month grace period to resume their premium payments before the insurance carriers end their coverage for nonpayment.

This year, many middle-class Californians who depend on the state-run insurance marketplace created under the Affordable Care Act faced annual costs that were hundreds of dollars higher than last year because of the end of enhanced federal subsidies that began during the COVID-19 pandemic.

In 2021, Congress voted to temporarily boost the amount of subsidies Americans could receive for an ACA plan.

The law also expanded the program to families who had more money. Before that 2021 vote, only Americans with incomes below 400% of the federal poverty level — currently $62,600 a year for a single person or $128,600 for a family of four — were eligible for ACA subsidies. The 2021 vote eliminated the income cap and limited the cost of premiums for those higher-earning families to no more than 8.5% of their income.

On top of the loss of the enhanced federal subsidies, the average premium charged by insurers this year for a Covered California plan rose by more than 10% because of fast-rising medical costs.

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The decline in ACA plan enrollees, however, has been greater in some other states. California has tried to keep people insured by using state tax money to fill in the gap for lower-income families.

This year, the state budgeted $190 million for premium subsidies for people with incomes of up to 165% of the federal poverty level.

In his budget plan, Gov. Gavin Newsom proposed spending $300 million on those state subsidies in 2027. That would expand the subsidies to enrollees with incomes up to 200% of the federal poverty level, or $31,920 for an individual or $66,000 for a family of four.

“We may actually see a number of Covered California enrollees paying less in 2027” because of the additional state subsidies, Altman said.

In May, Newsom also proposed in his budget that an additional $27 million in state money be used to help enrollees pay for the cost of gender-affirming care. That amount is an increase to the $30 million that he earlier proposed be spent this year and next to defray those costs for Covered California enrollees, according to state officials.

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Last year, federal health officials enacted a rule that said the federally subsidized ACA plans could no longer cover gender-affirming care because it was no longer considered an “essential health benefit.”

Newsom’s proposed budget still faces debate in Sacramento and approval by the state Legislature.

The state marketplaces, created by the Affordable Care Act, also known as Obamacare, were meant to help those who don’t have access to an employer’s health insurance plan and have incomes too high to qualify for Medi-Cal, the government-paid insurance for the poor and disabled.

Because of the higher cost this year, more people are choosing the lower-priced Bronze plans. Those plans have higher co-pays and deductibles than the more expensive plans.

“We’re very concerned with the large shift to Bronze,” Altman said. “When you have higher cost-sharing, you’re more likely to defer care.”

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China Launches Reusable Rocket in Race With SpaceX

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Video released by Chinese state media shows a state-owned aerospace company launching a rocket and recovering part of it on Friday. The successful launch of a reusable rocket was a major step for China toward challenging SpaceX’s satellite internet dominance.

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Nobel Prize winner leaving UC Berkeley for new role in China

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Nobel Prize winner leaving UC Berkeley for new role in China

Nobel Prize recipient Omar Yaghi is leaving his role at UC Berkeley to lead the development of a new artificial intelligence institute at Tsinghua University in Beijing, the Chinese university announced.

Yaghi will head the AI Chemistry and Materials Research Institute at Tsinghua, where he was appointed an honorary professor in 2022. Known as AIMATRY (AI × Materials × Chemistry), the new center will focus on material design and synthesis through artificial intelligence, according to a statement from the university.

In 2025, Yaghi shared the Nobel Prize in chemistry with Susumu Kitagawa of Kyoto University and Richard Robson of the University of Melbourne for their development of metal-organic frameworks, a type of super-porous material in which metal ions and carbon-based molecules combine to form crystals with exceptionally large surface areas.

The material has the potential to combat climate change by capturing and storing carbon or other pollutants, and by extracting water from the atmosphere in water-scarce areas. Upon awarding the prize, a member of the Nobel committee likened the technology’s ability to store enormous amounts of stuff in seemingly compact spaces to Hermione Granger’s enchanted handbag in the Harry Potter series.

Yaghi’s Irvine-based company, Atoco, has said it will start taking orders later this year for its technology that harvests water from the air.

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A representative for Yaghi said he was not yet available to respond to questions.

China is one of several countries that has been actively recruiting scientists from the U.S., where the Trump administration has slashed science funding, suspended research grants, fired science advisors and tightened immigration restrictions.

“For many, many years, our funding was very competitive; if you worked hard and you were doing good research, you would get funding,” Yaghi said of the U.S. in an interview with Scientific American earlier this year. “The current state is not so encouraging because of the cutting back on grants and support of science by the very agencies that many university researchers rely on.”

Yaghi was born in Jordan to Palestinian refugees, and immigrated to the U.S. when he was 15 to study.

“We’ve learned over and over in human civilization that scholars can move across borders,” Yaghi told the New York Times last year. “This is how knowledge spread and how vast regions of the world lifted themselves out of poverty.”

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Trump administration seeks to limit federal funding that doesn’t ‘advance’ presidential policies

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Trump administration seeks to limit federal funding that doesn’t ‘advance’ presidential policies

A new rule proposed by the White House Office of Management and Budget would fundamentally overhaul the way federal grants are awarded and overseen — a sweeping change that one scientific society said “would all but end the use of scientific merit in the selection of grants and programs across the government.”

Proposed in late May, the rule would give political appointees unprecedented control over federal grants for research, education and infrastructure, and specifies that government funds can only be spent on projects “aligned with administration policies and priorities,” according to a copy of the proposed rule.

The rule would also restrict research topics, limit U.S. scientists’ ability to collaborate with colleagues in other countries and make it easier for the government to suspend or cancel grants at any time.

The changes are intended to improve “transparency, accountability, and oversight for Federal awards” while “ensuring that American tax dollars are not wasted or misused,” according to the White House office.

But critics say that if the rule is implemented, the final sign-off for grants will no longer be in the hands of subject-matter experts within individual agencies, but in those of political appointees.

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“This touches all parts of American life,” said Dr. Eric Rafla-Yuan, a psychiatrist who practices at the Veterans Administration and San Diego County’s psychiatric hospital.

“Control of how all of the federal grants and programs are funded will fall under a small group of highly partisan individuals who would have very few limits on how they spend these billions of taxpayer dollars,” said Rafla-Yuan, who also chairs the Committee to Protect Public Mental Health advocacy group. “This touches everyone’s life, even if they don’t realize it.”

OMB published the proposed rule May 29, opening a 45-day comment period that closes July 13.

Opposition to the proposed rule has mobilized multiple sectors of society. Professional groups representing cancer researchers, civil engineers, county governments, medical schools, housing agencies, city and municipal governments, nonprofits and others have publicly expressed concerns about potential consequences.

By midday Thursday, the Federal Register logged nearly 100,000 comments about the proposal, many of them expressing concern.

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“I understand the need for oversight, fiscal responsibility, and accountability. That is not the issue,” wrote Jack Feldman, a neuroscientist who holds the David Geffen School of Medicine Chair in Neuroscience at UCLA. “The issue is whether scientific research is to be judged by scientific merit, or whether it can be approved, denied, or terminated according to broad political criteria that may change from one administration to the next.”

Crucially, the rule converts policies governing federal grants from “guidance” into binding regulations that all agencies would be required to follow. It would give political appointees power to override federal agencies’ merit-based reviews and mandate that a political appointee review decisions to ensure that all awards “demonstrably advance the President’s policy priorities.”

The elevation of political appointees in what were previously merit-based decisions has alarmed many scientists.

“The proposed rule changes would all but end the use of scientific merit in the selection of grants and programs across the government,” read a statement from the Planetary Society, a nonprofit dedicated to space research.

Researchers and science groups have also expressed concern about a section of the rule prohibiting the promotion of “theories of disparate-impact liability” — a legal concept that refers to policies that appear neutral but cause disproportionate harm to certain groups.

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The section’s vague language and many loopholes could have a chilling effect on any research that studies the effects of a disease, policy or public health intervention on any specific group of people, Rafla-Yuan said.

As an example, he said, “if there’s a specific age range that is at higher risk for suicide, and we want to figure out, well, what’s going on with people that are aged 14 to 19 … we can’t do that under the wording in this rule.”

New restrictions on collaborations with scientists in other countries would hinder opportunities for U.S. researchers and limit innovation, said Joanne Padrón Carney, chief government relations officer for the American Assn. for the Advancement of Science.

“Science is a global enterprise. Especially in biomedical and public health fields, diseases don’t care about borders or government policies,” she said.

California’s congressional delegation sent a letter Wednesday asking OMB to rescind the proposal, outlining concerns about its impact on scientific innovation, U.S. competitiveness and the fiscal stability of local governments, many of which rely on federal grants for local services.

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The proposed rule grants the federal government broad powers to suspend or cancel grants for any reason, introducing “unprecedented unpredictability into local governance,” the lawmakers wrote, “leaving vital infrastructure projects unfinished and abandoning vulnerable populations who rely on these services.”

Republican Sen. Susan Collins has also asked the White House to withdraw certain parts of the letter and extend the public comment period, saying the proposed rule as written would “harm small and rural communities, undermine scientific and biomedical research, and conflict with Congress’ control over the federal funding process.”

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