The high cost of living in the state of California has also meant millions of people cannot afford to maintain adequate health insurance coverage. Also the rate of premium increases has far outpaced inflation almost 4-fold rising by a record 117%. This has prompted officials to seek ways of making health insurance in California more affordable for lower to middle income people. The state legislature’s attempts to reign in these rates was further curtailed by high-powered lobbying by the insurance companies
California Health Insurance Exchange Is Based On Working Model
Southern California is home to one of the most successful health insurance exchanges in the country. The 15-year old exchange has over 12,000 employers and caters to more than 150,000 members. In actual fact, the California health insurance exchange became a basis for the Affordable Care Act which went into effect in 2010. It was formed to give customers greater flexibility and more options when it came to healthcare. To date other states have been studying the plan with a view of launching an internet-based exchange model for the entire country.
Benefits of Health Insurance for California
The California health insurance exchange comes with a set of benefits and protections that safeguard consumers against concealed limits and which may reduce coverage. The coverage affords specific benefits while offering different levels of cost sharing, such as co-pays and co-insurance. The new exchange may for the first time give individuals and employers the chance to enjoy health plan that is similar to what members of Congress have. Employers who still offer health plan benefits will need to change how they provide coverage to transition into using the new exchange. Employers can provide employees with voucher-like premium contributions. Employees can use these to select a health plan from several plan options at different benefit levels and prices through the exchange.
The Affordable Care Act not only has provisions to make health coverage more transparent, but it also includes government subsidies to share access to health care with U.S. citizens who can't afford the cost of California health insurance premiums. Financial help will be based on family size and income.
With greater clarity and standardization among health care plans offered through the state exchange, comparing California health plan quotes will be easier and give consumers a more realistic idea of what they are actually purchasing. They'll also enjoy an increased sense of oversight.
Perhaps the days of bogus health plans being freely sold will come to end in the near future. As we've recently seen, regulation has not protected consumers who faithfully paid insurance premiums only to discover their medical bills were never paid because an insurance company was allowed to take their money without maintaining the funds to pay for claims.
The California health plan exchange is working towards becoming a fair business exchange and less of a gamble for Californians. Extending health care services to more citizens has benefits that go far beyond benefits for individuals, families and small business owners. Withholding care until emergency services are required has a much higher cost for society than offering preventive care. In terms of both financial and moral costs, the new state exchange shows great promise.