Understanding California Health Insurance Laws
A good health insurance broker will tell you that health insurance is an absolutely essential component for maintaining good health. Sometimes, people only think about getting treatment for something that has become an emergency scenario. However, there are so many times when preventative medicine and treatment can help a person to avoid emergency scenarios. This is only one of the many reasons that the state of California has made health insurance a requirement for every Californian.
There are different types of health insurance coverage in California. Private health insurance and HMOs, as well as public programs like Medicare and Medi-Cal are not the same. Different government agencies
regulate each of these programs, as each has a singular set of rules.
Why Should People Have Health Insurance?
Health insurance protects people from high and unexpected medical costs. The amount you pay for covered health care services is greatly reduced from the amount that you would have to pay if you didn’t have any insurance. If your appendix busts or if you have a heart attack or stroke, you’re going to need medical treatment that is going to be exceedingly costly. As the patient, and the reason for the costly care, you’re at much greater risk of absorbing any and all costs when you don’t have insurance.
Another consideration is for people who have health conditions that require them to take medicines or receive treatment. Folks with asthma, high blood pressure or diabetes, for instance, need to take medications that must be filled faithfully and frequently. In most cases, costs would exceed their ability to pay, were it not for insurance coverage. You like to think that the
best health insurance is available to you and your family.
How Did Health Care Reform Affect Californians?
The more people who have health insurance, the lower the cost of health insurance for everyone. This is one of the central tenets of California’s decision to create a health insurance mandate for its citizens. It also decreases the number of uninsured treatments that all residents wind up having to pay for. When people who do not have insurance go to the emergency room and cannot pay the bill, the costs of treatment tend to go up for everyone. Taxpayers are affected by this.
When Obamacare passed in 2010, there were two salient points. First, patients couldn’t be denied coverage for pre-existing conditions. Second, a federal individual mandate was established, which meant that having health insurance that meets specific conditions became a requirement under law. Under the terms established by this system, by making sure that everyone paid into the system, the sickest members of the community could receive proper coverage without costs spiraling out of control for everyone. Those who chose to go uninsured were subject to a financial penalty at tax time.
In 2019, the Tax Cuts and Jobs Act changed this, eliminating the requirement and the penalty. When this change was enacted, insurance prices began spiraling out of control. That’s why, in 2020, California, along with four other states, implemented its own individual mandate. In California, the open enrollment 2023 runs until January 15.
Why Invest in Health Insurance?
It is every citizen’s right to expect health insurance. In most of the country, it’s very possible to exist in a highly-vulnerable situation without it. In California, though, every individual is mandated to receive it. This is beneficial to the individual because there is ample opportunity for check-ups and preventative care, as well as the management of health issues like diabetes. It is beneficial to the state because it and its citizens will be able to save a lot of money. For more information on the virtues of health insurance or on particular plans,
contact us at Sackett & Associates Insurance Services today.
