California health insurance is very important the mental and physical well being of every California resident. California health insurance allows families to obtain the health care that they need to stay healthy.
Health insurance companies in California provide reimbursement to health care providers for services rendered to California residents.
Although the majority of California residences have health insurance, there is still about twenty percent that do not have any type of insurance.
For those California residences that want to obtain health insurance there are many things you need to know to make an informed decision the biggest being what the plan covers. Choosing the correct insurance is critical to your family’s overall health.
The biggest factor in purchasing a health insurance in California, is your budget. Insurance companies have different plans to fit any budget. These plans take into consideration your lifestyle habits. An insurance company will charge higher rates if there is a smoker on the plan.
Age, marital status, family size and health conditions also play a big part in the cost of your insurance plan. Usually the best type of group insurance plans is offered by employers.
They work out the pricing with the insurance companies to give the best rates to their employees. However if the business is small, they may not be able to offer any insurance at all.
The Various California Health Insurance Options
There are basically five different types of health insurance that are available to California residents. An indemnity policy is one of the conventional policies.
This type of policy offers fee for services render. The advantage of this type of policy is that the plan is flexible and you can choose any doctor. The disadvantage to this type of plan is that they are becoming very hard to find because of inflated prices.
Health Maintenance Organizations also know as a HMOs or Managed Care, provides medical covered by specific health care professionals that are within their network.
The advantage to this type of policy is that there are no claim forms and the out of pocket expenses are usually very low.
The disadvantage to these policies is that you may have to change health care providers or incur higher charges if your current provider is not within the network. There are also limitations on the services that can be provided under this plan.
The third type of plan offer by California health insurance is a preferred provider organization or a PPO. This plan is comparable to the HMO; the only difference is that you can go out of network without paying extra charges.
This is a major advantage to this plan. The disadvantage would be that the insured incurs more out of pocket expenses and the costs vary.
Insurance plans for the self employed and single employers usually entail the company covering all of the health care benefits. The funds usually come from a pool of money that is created. The advantage is that a third party usually deals with all of the processing of claims and payments.
A Multiple Employer Welfare Arrangements or MEWA is a policy where the insurance company allows the employees to start fund to cover anything that the insurance does not.
The disadvantage to this policy is that there are strict guidelines. Therefore, there are less then ten, that are part of the California health insurance plans.
There are times when a person is denied health insurance because of a pre-existing health condition. There are a few states in the US that will offer a risk pool for its residents.
California health insurance offers its residents insurance through the Major Risk Medical Insurance Program.
There are hundreds of not thousands of California health insurance providers. It will take a little research for you to find the one you are most comfortable with.
You can use online resources to research and find the perfect California heath insurance.
Summary:
When you are choosing California health insurance, it will be necessary to decide on which type of plan suites your needs. Take everything into consideration including your family size and budget. California offers many different health insurance options including HMOs and PPOs. Make sure that you understand your policy and do not be afraid to ask as many questions as it takes to understand completely what you are paying for.
