California’s health exchange, Covered California, earned a $674 million grant that it hopes to use to, in part, re-invent the healthcare system.

Part of the challenge head for the government-operated marketplace is outreach. There is an estimated 5 million, currently uninsured Californians who will be eligible to purchase coverage through the exchange. Not all will have to foot the entire bill, as subsidies are available to about half those currently without coverage.

Of the $674 million, Covered California will use $250 million for a two-year outreach campaign, $225 million to help offset costs associated with federal healthcare reform, and use the balance to cover the next four years of operating costs.

The health exchange will be operational in January, and will begin enrolling Californians as early as October. There are just two months remaining until providers submit the first round of bids to the exchange.

Read the full story at the Los Angeles Times.