The Sacramento Bee reported that California has received conditional approval from the Obama administration to begin subsidized health care. The state plans to commence subscriptions in October.
"Covered California" hopes to service the large population of state residents who are eligible for federal subsidies for health coverage next year. Americans will be required to obtain insurance beginning in 2014.
California has qualified for $237 million in federal grants to date to build the infrastructure of its marketplace, according to the Bee.
The grants pay for an IT system, which enrolls subscribers statewide, and marketing efforts and staff to operate the program.
Federal officials see California as a key state in the program. With the highest population number of any state, California has unique language and cultural barriers among its uninsured population.
Currently, the federal government has approved "health exchanges" in 19 states and Washington, D.C.