Health insurance in California has some unique features with
long-term results, which enable the residents of California to stay
fit, and healthy. The California state law requires health insurance
companies to include certain provisions including “guaranteed
renewable” provision.
Guaranteed Renewable Provision
The
“guaranteed renewable” provision ensure that the insurance company
cannot stop or cancel the contract with the insurer and the insurance
company has to renew the policy on request from the insurer provided
that the insurer has not given any false statements or information on
his original application and has not failed in paying premium timely.
Significance of Provision
The
provision is important in two respects – Firstly, the provision does
not prohibit the insurance company from hiking the premium or refusing
any form of coverage. However, if you have insurance policy you do not
have to worry about its renewal, as the insurance company has to give
you the option of renewal. Secondly, the pre-existing condition of the
body does not come as an obstacle in the way of procuring health
insurance
Through the introduction of such provisions,
California State hopes to see that all its residents have health
insurance irrespective of their income. Though, most of California
residents have health insurance, there is still 20% who do not have or
yet to have any kind of insurance.
By opting for Health
Insurances, you may feel that you are wasting your money by investing
for the benefits that you might require in the future. Think twice, the
California health insurance policies not only covers your medical
expenses but it also helps you to bring back your life on normal track,
which has been affected by your physical ailment. Its better to have
California health insurance plan at an early stage because you don’t
know at what part of life, your policy may become handy for you.
As
an insurer, before choosing any policy you need to check out what the
plan covers and moreover whether the plan meets your cost, services and
quality standards. Selecting the appropriate policy is pivotal for
reaping the desired benefits. Insurance companies take into account the
lifestyle of a person before pricing and formulating heath insurance
plans in California. For instance if an individual is a smoker, the
insurance company will charge premiums comparatively higher than normal
cases.
Factors like health conditions, age, marital status
and family size constitute an important part in the price of an
insurance plan. Employers generally provide the most appropriate and
outstanding group insurance plans. However, if the business is of tiny
scale, then don’t expect employers to provide health insurance policy.
Different Types of Policies
No
matter whatever plan you choose, it must meet your requirements and has
the reputation of offering quality services. Basically health insurance
in California can be divided into five parts.
Indemnity
Policy: Indemnity policy is governed by California Department of
Insurance (CDI) and gives an individual a liberty to select health care
unit or doctor, required for his treatment.
Preferred
Provider Organization (PPO): Preferred Provider Organization is the
next kind of health insurance in California, which actually allows you
to pay less if you choose health care facility or doctor within the PPO
network and is regulated by either the California Department of
Insurance (CDI) or the Department of Managed Health Care (DMHC).
Health
Maintenance Organization (HMO): HMO allows you to choose doctors or
health care facilities that come under HMO and is regulated by the
Department of Managed Health Care (DMHC)
Self-Insured Health
Plan: Business houses and big organizations prefer self-insured plans,
which are monitored by Employee Retirement Income Security Act,
(ERISA). Here, huge amount of money is kept as a reserve to meet the
medical expenses of the policyholders.
Multiple Employer
Welfare Arrangement: Employers, associate of organization like
industry, trade and others make account in order to reimburse medical
expenses, which is controlled by the California Department of Insurance
(CDI)
With so many options, you can choose any health
insurance in California that understands your requirements of giving
you protection coverage and peace of mind.