Health insurance is an incredibly important commodity these days. It has always been a good idea to have health insurance in order to protect you from horrific accidents or illnesses in which medical expenses might become impossible to pay off. Most people long to have health insurance, but many cannot, for various reasons, afford to pay for it. However, a recently passed law has mandated that all individuals must have health insurance plans. The penalty in the absence of a health insurance plan is a large fine, which of course is not the desired the result. The goal is to have everyone insured, instead. The bill that was passed requiring health insurance also provided for something called a health insurance exchange which is designed to help provide federally subsidized health insurance plans in order to make them more broadly affordable. With any luck, a California health exchange will soon be available to consumers.
A health insurance exchange program is a new type of organization, both in the economy generally and in the healthcare industry. A health insurance exchange is a government-regulated, and often government-run, health care plan in the United States that is standardized. Through a health insurance exchange, individuals are able to purchase health insurance plans which are eligible for federal subsidies. This makes them more affordable in the long run, which helps to save the customer money in the short term. The Patient Protection and Affordable Care Act is the law that allowed for the creation, and regulation, of health insurance exchanges. A California health exchange, for example, must be found, certified, and fully operational by January 1, 2014. This means that a California health exchange is very likely just around the corner. California is one of the largest states in the union by population or geography, so it is inevitable that a California health exchange for health insurance is going to be developed and fully certified. A health insurance exchange does not itself bear any risk because it is not a health insurance coverage provider. Instead, it is a company that provides a market (or exchange) which gets to decide which providers can participate and have access to their customers. Health insurance exchanges come in the public, quasi-public, and private varieties. Research must be done by the consumer into which vehicle of health insurance exchange they prefer.
One of the main provisions of all health insurance exchanges, and of a prospective California health exchange, is guaranteed issue. This means that providers cannot deny health insurance coverage to individuals for any reason whatsoever. There will also be a limit on price variation, tiered plans, additional regulations on rescission, and limits on lifetime and annual limits.
A California health exchange's goal will be to provide a high quality service at an affordable price. At the base of the mission of these health insurance exchanges is the idea that better services can be provided that are more fair to the insured and more affordable, while still enabling the health insurance providers to turn profits.
The vision of the California Health Exchange is to improve the health of all Californians by assuring their access to affordable, high quality care. To know more about the health insurance statistics in U.S., visit about.com
Looking Forward to the California Health Exchange