Save on California Health Insurance

On January 9, 2007, California Governor Arnold Schwarzenegger outlined his proposals to make health insurance coverage mandatory for all those living in California, including those there illegally. The governor’s bold plan requires all citizens to carry insurance, and provides mechanisms for state-funded plans for those who cannot afford health insurance.According the Schwarzenegger, there are 6.2 million uninsured in California.

Read the Governor’s press release

And most recently vetoed a health insurance bill that would protect consumers from dealing with canceled policies. The now dead bill would have forbade insurance companies from canceling coverage, had a policyholder made costly claims without an independent review. (Read the story Here!)

Want to help the Governor get his legislation passed, or have a concern with how portions of his plan might affect you and your family? Contact him, or members of your state legislature:

Contact Governor Arnold Schwarzenegger
Contact your State Senator and State Representative

California Health Insurance Regulations

The California Health Insurance Reliability Act, (CHIRA), was passed in the year 2005 to provide inexpensive health insurance coverage to the people in that state. The Health Insurance Portability and Accountability Act (HIPAA) was passed in 1996, to make sure that the health insurance coverage of employees and their families remains intact in the event of termination or change of job.

Individual coverage is the main alternative for those not covered through employment and not eligible for publicly subsidized health coverage. Nearly 8 percent of non-elderly Californians, or about 2.4 million people, are now participating in the individual insurance market.

Premiums paid by employees for small group coverage in the California increased 53% between 2003 and 2006, from $250 to $382. Premiums for individual coverage rose 23% between 2002 and 2006, from $211 to $259. However, the average actuarial value of individual coverage declined dramatically: In 2003 individual market policies paid 75% of medical costs on average; that figure had dropped to 55% just three years later. In contrast, small group market policies retained their actuarial value, paying for roughly 83% of medical expenses across a similar period, according to California HealthCare Foundation study.

When comparing free quotes for California Health Insurance, make sure to compare policy costs, benefits, exclusions and overall health plan “value”.

Things to look for:

• Percent of expenses paid by insurance;
• Annual out-of-pocket expenses; and
• Total annual cost.