California unveils ads for new health insurance market

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California unveils ads for new health insurance market

Covered California will use the common touch, not stars, to persuade people to sign up for health coverage in the new exchange.

By Chad Terhune and Anna Gorman

6:05 PM PDT, August 29, 2013 - Los Angeles Timies

Everyday people stuck in crowded emergency rooms or crashing their mountain bikes will be starring in California's first commercials for the biggest healthcare expansion in decades.

The state faces the daunting challenge of trying to reach more than 5 million people who are uninsured or don't receive health insurance at work. Now officials are preparing to advertise on television and radio, in print and online — much of it in Spanish — to persuade consumers unfamiliar with the federal health law to sign up.

The state is purposefully avoiding Hollywood stars in its opening sales pitch. Instead, the state's ads revolve around people worrying about getting care and paying their medical bills in hopes that those stories will counter persistent political attacks and widespread confusion about the Affordable Care Act.

"You won't see movie stars and rock stars," said Peter Lee, executive director of Covered California, while unveiling the ads at a Sacramento theater Thursday. "Californians want to hear from people like them."

Covered California, the state agency implementing the federal law, will begin airing the commercials next week in the test markets of San Diego, Sacramento, Chico and Redding. A statewide campaign will kick off in October when people can begin signing up for health coverage that takes effect in January.

California is seen as a bellwether state for the rollout of President Obama's signature law, and any early stumbles will be seized upon by critics.

Covered California said it planned to spend $80 million through the end of next year on marketing, drawing on federal grant money. That money may not go far given the state's size and diversity as well as the high cost of advertising in the biggest markets. Meantime, opponents of the health law have dominated much of the discussion thus far.

"There has been so much negative publicity and misinformation that makes it that much harder to do a public information campaign," said Stan Dorn, a senior fellow at the Urban Institute, a nonpartisan think tank in Washington.

The commercials shown Thursday, in English and Spanish, played up the tag line of "Welcome to a new state of health."

One of the ads features people driving along California's signature coastline with green road signs that read "Welcome to getting care" and "Welcome to feeling at ease." A Spanish-language ad shows smiling faces inviting people into their homes, an auto repair shop and a cafe as they say, "Bienvenidos."

Two more ads play on the fears of those without health insurance, showing scenes of car crashes, basketball injuries and packed emergency rooms. The narrator tells viewers that they can move from the "state of what-if" to a new "state of health."

Starting in January, the healthcare law requires insurers to cover people regardless of their preexisting medical conditions. The law also requires most Americans to buy health coverage or pay a penalty.

Twelve health insurers will be selling individual and family policies in California's new market, and federal subsidies will be available to many consumers to make coverage more affordable.

In addition to its advertising, the state launched an online price-comparison tool Thursday at http://www.coveredca.com enabling consumers to see specific prices of health plans and determine what government assistance they may qualify for.

Consumer groups and media executives gave the state's first ads generally positive reviews for highlighting personal stories that can make a complex government program more easily understood.

"It is about people identifying with their own stories of both the fear of being one emergency away from financial ruin and the relative ease of getting new financial security through coverage," said Anthony Wright, executive director of Health Access, a consumer advocacy group.

Advertising experts said that the commercials were a good start but that the state needed to quickly fill in the details for consumers. Many middle-class families may not qualify for much government aid, and they have expressed concern about high premiums.

"The first spots are pretty, but they're not meaty," said Sheri Sadler, president of Sadler Strategic Media in Los Angeles. "They don't tell me what to do and how I participate."

People in their 20s are featured prominently in the ads. Signing up young and healthy people is crucial for the state exchange to balance out the costs of older, sicker enrollees.

One ad centers on Ajay, a 20-year-old uninsured student from Sacramento, discussing her inability to afford care when an asthma attack occurs. "We tend to think we're invincible, but all it takes is a fall or some kind of accident," she says sitting in a coffee shop.

A print ad tells the story of a 24-year-old who had health insurance and still got saddled with $4,000 in unexpected medical bills.

Lee said the state planned to refine its marketing strategy based on what it learns next month in its test markets. Another pressing concern is whether the state's online enrollment system will be ready as advertised Oct. 1. The state said last week that it was awaiting the results of key computer tests early next month.

Lee said Thursday that he's optimistic the state would be running "on all cylinders Oct. 1."

The state's goal is to enroll 1.4 million Californians in private health plans by the end of next year. Another 1.4 million residents may be eligible for an expansion of Medi-Cal, the state's Medicaid program for the poor.

California will be getting some outside help beyond its advertising budget.

The California Endowment is spending $25 million on a media campaign aimed at Latinos to promote the health law's benefits. The group's partnership with Spanish-language television stations and newspapers will include telethons, town hall meetings and health fairs.

The organization has also committed $200 million during the next four years to grass-roots outreach, including to groups such as a boxing club in Santa Ana and to black barbershops. California has awarded about $40 million in grants to community groups, colleges and unions to do outreach.

chad.terhune@latimes.com

anna.gorman@latimes.com

Twitter: @chadterhune

@annagorman