Health Insurance In California

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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.

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