Getting Covered California – What is the New Health Care Reform Act?
Covered California is the largest health insurance market in the U.S. State of California established under the new Patient Protection and Affordable Care Act (PPACA). The exchange allows eligible people and small companies to buy private health care insurance policy at medically underwritten rates. This means that, out of pocket expenses are limited to the difference between what the insurance company will charge and what you actually pay for your health care. You need not worry about the rising cost of health care as the costs have been limited as much as possible in this market. As a result, many people can afford to buy their own health care insurance policies in this state.
With the introduction of the covered California health insurance plans, there has been a marked increase in people applying for health care insurance. However, as this new market got activated, there was a lot of confusion and misunderstanding which prevented many people from availing the benefits provided by these policies. This resulted in an increase in premiums and a resultant increase in the tax burden on the State of California. This has now been solved with the introduction of the Medical Assistance Plan or MedPlan California.
The MedPlan California is a part of the Medications Medicaid Program, which is a collaboration of the State of California and the Federal Government under the Health Insurance Portability and Accountability Act or HIPAA. The MedPlan is mandatory for all residents in covered california who are below 18 years of age. The MedPlan is a good option for families and individuals who cannot afford to buy private health insurance policies. One of the best features of MedPlan California is that the plan offers guaranteed issue coverage for those who qualify under its Medications Medicaid program.
Apart from MedPlan, there are many other schemes offered by the State of California for those who do not qualify for MedPlan. Thus, there are several different types of health insurance plans available in California. Each of these plans differ from one another in terms of their coverage and premiums. Most of them provide basic coverage while some offer more comprehensive coverage.
One type of plan known as Medigap California is specifically designed for individuals and families who fall below the defined income guidelines established by the federal government for getting coverage through the Medicaid program. According to this law, you have to get coverage from the Medicare Supplement Insurance Plan if you are receiving Medicare. So, if you are getting Medicare, you can choose to get coverage from any other group policy that you like, as long as it does not include Medigap. The nice thing about Medigap is that you do not need a prescription for this policy. You will also get coverage against three different falls that will occur within a year.
Another type of health insurance plan in California is offered through open enrollment. Unlike Medigap, open enrollment allows people who do not receive Medicare to sign up for Medigap. If you are one of these individuals, you can sign up for any other private health plan and then go forward and sign up for Medicare as well. You may find that the rates for getting coverage through open enrollment are higher than the rates for those who do not get coverage through Medicare.
If you are interested in getting coverage through one of these two types of plans, you should look into the new Health Care Reform Act that was just enacted in January. The Health Care Reform Act was introduced by Sen. Harry Reid (D- Nev.). According to the Health Care Reform Act, all of the insurers will be required to offer at least Affordable Care Act, or COBRA, plans to all of their current customers. Prior to this law, insurers could exclude individuals with pre-existing conditions and families with dependent children. This could force many people to forgo health plan coverage, especially those who could not otherwise afford the premiums.
For those who cannot forgo their current medical insurance coverage, but would like to be able to get coverage through an insurer who offers a more affordable option, they should look into the new options that are available to them. Those who already have a medical condition should definitely check out the new options that are available to them through the Affordable Care Act, or COBRA. Those who are self employed should definitely check out the new options that are now available for them to get proper medical insurance coverage. Those who are living on only a limited income and are currently unemployed should consider looking into other financial assistance options that are currently available in California.